question archive Multiple Choice Question 140 The following monthly data are available for Bramble Corp
Multiple Choice Question 140 The following monthly data are available for Bramble Corp
Subject:AccountingPrice:2.84 Bought3
Multiple Choice Question 140 The following monthly data are available for Bramble Corp.. which produces only one product: Selling price per unit, $54; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 5000 units. How much is the margin of safety for the company for June? $1050 0 $42000 O $84000 $213300
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Margin of safety = total sales in dollars - break even point sales in dollars
= 270000 - 56700
= 213300
Note :-
Contribution margin = sale price - variable cost
= 54- 14
= 40
Break even point = fixed cost / contribution margin
= 42000/40
= 1050 units
Total break even sales in dollars = break even sales in units * sale price per unit
= 1050 * 54
= 56700
Total sales in dollars = total sales in units * sale price per unit
= 5000*54
= 270000
IF YOU FOUND THE ANSWER HELPFUL PLEASE UPVOTE????.
