What is the margin of safety in sales dollars

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Reference no: EM132866381

Question - Charlie Shine has written a self-improvement book. The following are its pricing and cost details:

Selling price $18.00 per book

Variable cost per unit:

Production $3.50

Selling & administrative 1.90

Fixed costs:

Production $33,600 per year

Selling & administrative 15,540 per year

Charlie Shine expects to sell 6,000 books next year. What is the margin of safety in sales dollars?

a. $26,460

b. $70,200

c. $37,800

d. $11,300

Reference no: EM132866381

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