Business, 16.07.2021 16:00 logannnnnnnnn56
Margin of Safety Head-First Company plans to sell 5,170 bicycle helmets at $74 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 1,707.
Required:
a. Calculate the margin of safety in terms of the number of units
b. Calculate the margin of safety in terms of sales revenue.
Answers: 1
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Margin of Safety Head-First Company plans to sell 5,170 bicycle helmets at $74 each in the coming ye...
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