Chromatics, Inc., produces novelty nail polishes. Each bottle sells for 3.60. Variable unit costs are as follows:
Acrylic base- .75
Pigments- .38
Other ingredients- .35
Bottle, packing material- 1.15
Selling commission- .25
Fixed overhead costs are 12000 per year. Fixed selling and administrative costs are 6720 per year. Chromatics sold 35000 bottles last year.
What was the margin of safety?
Answers: 3
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Chromatics, Inc., produces novelty nail polishes. Each bottle sells for 3.60. Variable unit costs ar...
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