Units sold Price Sales Variable manufacturing costs Fixed manufacturing costs Variable selling costs Fixed administrative costs Required: Using the data provided, compute the margin of safety and margin of safety ratio. Margin of safety Margin of safety ratio 1,000 $ 10 $ 10,000 4,000 2,000 1,000 1,000 %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Units sold
Price
Sales
Variable manufacturing costs
Fixed manufacturing costs
Variable selling costs
Fixed administrative costs
Margin of safety
Margin of safety ratio
1,000
$ 10
$ 10,000
4,000
Required:
Using the data provided, compute the margin of safety and margin of safety ratio.
%
2,000
1,000
1,000
Transcribed Image Text:Units sold Price Sales Variable manufacturing costs Fixed manufacturing costs Variable selling costs Fixed administrative costs Margin of safety Margin of safety ratio 1,000 $ 10 $ 10,000 4,000 Required: Using the data provided, compute the margin of safety and margin of safety ratio. % 2,000 1,000 1,000
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