A company makes a single product that it sells for $16 per unit. Fixed costs are $76,800 per month and the product has a contribution margin ratio of 40%. If the company’s actual sales are $224,000, its MARGIN OF SAFETY is:
A)$32,000
B)$96,000
C)$128,000
D)$192,000
Borich Corp. produces and sells a single product. Data concerning that product appear below:
|
Selling price per unit |
$150.00 |
|
Variable expenses per unit |
$73.50 |
|
Fixed expenses per month |
$308,295 |
The break even in monthly UNIT sales is closest to:
A) 2,055
B) 4,030
C) 4,194
D) 3,426