Ask Question
24 July, 03:59

Hyde's Headphones sells deluxe headphones for $90 each. Unit variable expenses total $70. The breakeven sales in units is 1000 and budgeted sales in units is 4620. What is the margin of safety in dollars?

+3
Answers (1)
  1. 24 July, 06:38
    0
    0.7835 or 78.35%

    Explanation:

    Budgeted Sales = $90 per unit x 4620 units = $415,800

    Break-Even Sales (Revenue) = 1000 units x $90 per unit = $90,000 units

    Margin of safety = (Budgeted Sales - Break-Even Sales) : Budgeted Sales

    Margin of Safety = ($415,800 - $90,000) : $415,800 = 0.7835 or 78.35%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Hyde's Headphones sells deluxe headphones for $90 each. Unit variable expenses total $70. The breakeven sales in units is 1000 and budgeted ...” 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