Compute the margin of safety in dollars and ratio

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Reference no: EM13913049

Glacial Company estimates that variable costs will be 60% of sales, and fixed costs will total $1,142,160. The selling price of the product is $6.

Compute the break-even point in (a) units and (b) dollars.

(a) Break-even sales ________ units

(b) Break-even sales $ _____________

Compute the margin of safety in (c) dollars and (d) as a ratio, assuming actual sales are $3,569,250. (Round ratio to 0 decimal places, e.g. 20%.)

(d) Margin of safety ratio _____________%

Reference no: EM13913049

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