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ad-work [718]
4 years ago
7

The following monthly data are available for Crane Company. which produces only one product: Selling price per unit, $38; Unit v

ariable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units. How much is the margin of safety for the company for June?
Business
1 answer:
KiRa [710]4 years ago
5 0

Answer:

Margin of safety= 250 units

Explanation:

Giving the following information:

Selling price per unit, $38; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units.

First, we need to calculate the break-even point in units.

Break-even point= fixed costs/ contribution margin

Break-even point= 42,000/(38-14)= 1,750 units

Margin of safety= current unit sales - break-even point= 2,000 - 1,750= 250 units

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2 years ago
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olga_2 [115]

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kirill [66]

Answer:

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C. it is a combination of two or more companies into a single form (merger like merging two things into one) 
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