Solution-What is the margin of safety as a percent of sales

What is the margin of safety as a percent of sales

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Reference no: EM132837110

Problem 1: A firm expects to sell 25,000 units of its product at $11 per unit. Net income before tax is predicted to be $60,000. If the variable costs per unit are $6 per unit, total fixed costs must be:

A) $ 65,000.

B) $215,000.

C) $125,000.

D) $ 90,000.

Problem 2: Mar Co. has fixed costs of $36,000 and a contribution rate of 24%. If predicted sales are $200,000, what is the margin of safety as a percent of sales?

A) 6%.

B) 25%.

C) 33%.

D) 50%.

E) 75%.

Reference no: EM132837110

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What is the margin of safety as a percent of sales

Reference no: EM132837110

Reference no: EM132837110

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