Calculate margin of safety in both units and sales dollar

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Question - Central Cycles operates a single-product entity. Data relating to the product for 2021 were as follows

Annual volume 1,750

Selling price per unit $ 4,500

Variable manufacturing cost per unit $ 1,900

Annual fixed manufacturing costs $ 250,000

Variable marketing and distribution costs per unit $ 1,150

Annual fixed non-manufacturing costs $ 275,000

Required -

1. Calculate the break-even in both units and sales dollars for 2021.

2. Calculate the margin of safety in both units and sales dollars.

3. Calculate the profit achieved in 2021 given the annual volume of units sold.

Reference no: EM133063247

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