What is the company margin of safety in units

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Hill and Hamer Limited makes specialist storage units. In the 20X2 financial year each unit will sell for £178. Costs of manufacture are: direct materials £38 and direct labour £26. Fixed costs are budgeted at £126 680. The net profit budgeted for 20X2 is £92 270.

Problem 1: What is the company's margin of safety in units (to the nearest whole unit)?

a. 810

b. 1111

c. 302

d. 1921

Reference no: EM132982883

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