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Stuart Company makes a product that sells for $35 per unit. The company pays $24 per unit for the variable costs of the product and incurs annual fixed costs of $96,800. Stuart expects to sell 21,500 units of product.   Required Determine Stuart’s margin of safety expressed as a percentage. (Round your percentage answers

Stuart Company makes a product that sells for $35 per unit. The company pays $24 per unit for the variable costs of the product and incurs annual fixed costs of $96,800. Stuart expects to sell 21,500 units of product.   Required Determine Stuart’s margin of safety expressed as a percentage. (Round your percentage answers

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2Q: Define and explain contribution margin ratio.
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Stuart Company makes a product that sells for $35 per unit. The company pays $24 per unit for the variable costs of the product and incurs annual fixed costs of $96,800. Stuart expects to sell 21,500 units of product.

 

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Determine Stuart’s margin of safety expressed as a percentage. (Round your percentage answers to 2 decimal places (i.e., 0.2345 should be entered as 23.45).)

Margin of safety %
Transcribed Image Text:Margin of safety %
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