Answer and Explanation:
The computation is shown below:
The Selling price per unit = $225,000 ÷ 7500 = $30
ANd,
Variable cost per unit = $135,000 ÷ 7500 = $18
a) Breakeven point = Fixed cost ÷ Contribution margin per unit
= $48,000 ÷ ($30 - $18)
= 4000 units
b) Breakeven dollars = Breakeven point × selling price per unit
= 4000 × 30
= $120,000
C) Margin of Safety in dollars = Sales Revenue - Breakeven dollars
= $225,000 - $120,000
= $105,000
d) Margin of Safety in percent
= $105,000 ÷ $225,000
= 46.67%
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Nick is a LIMITED PARTNER in this partnership. A limited partner is one who contributed to the formation of a company in form of capital but who is not actively involved in the day to day running of the business and his liability in the business is limited to the extent of his investment.
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