In the upcoming year, NUBD estimates that it will produce and sell 4,000 units. The variable costs per unit and the total fixed costs are expected to be the same as in the current year. However, it anticipates a sales price of P16 per unit. What is Value Pro's projected margin of safety for the coming year?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In the upcoming year, NUBD estimates that it will produce and sell 4,000 units. The variable costs per unit and the total fixed costs are expected to be the same as in the current year. However, it anticipates a sales price of P16 per unit. What is Value Pro's projected margin of safety for the coming year?

NUBD produces and sells a single product. Information on its costs follow.
Variable costs:
SG&A
P2 per unit
P4 per unit
Production
Fixed costs:
P11,000 per year
P15,000 per year
SG&A
Production
Transcribed Image Text:NUBD produces and sells a single product. Information on its costs follow. Variable costs: SG&A P2 per unit P4 per unit Production Fixed costs: P11,000 per year P15,000 per year SG&A Production
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