Ask Question
31 December, 08:18

Margin of Safety Head-First Company plans to sell 4,810 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: 1. Calculate the margin

+3
Answers (1)
  1. 31 December, 08:27
    0
    The margin is $229,622

    Explanation:

    margin of safety = Total sales-Breakeven sales

    (4810 - 1707) = 3103 units

    = (3103*74)

    = $229,622

    Therefore, The margin is $229,622
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Margin of Safety Head-First Company plans to sell 4,810 bicycle helmets at $74 each in the coming year. Unit variable cost is $45 (includes ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers