Ask Question
3 July, 19:37

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

+2
Answers (1)
  1. 3 July, 21:52
    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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers