Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 3 - Cost-Volume-Profit Analysis - Assignment Material - Exercises - Page 95: 3-24(3)

Answer

Margin of Safety (in dollars) = 0 * $20.33 = $0

Work Step by Step

Margin of Safety (in units) = Actual Sales - Breakeven Sales Margin of Safety (in units) = 90,000 units - 90,000 units = 0 units Margin of Safety (in dollars) = Margin of Safety (in units) * Selling Price
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