Benedetta Company makes a product that sells for $57 per unit. The company pays $25 per unit

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Benedetta Company makes a product that sells for $57 per unit. The company pays $25 per unit for the variable costs of the product and incurs annual fixed costs of $240,000. Benedetta expects to sell 12,000 units of product.

Required
Determine Benedetta’s margin of safety expressed as a percentage.

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Fundamental Managerial Accounting Concepts

ISBN: 978-0078025655

7th edition

Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old

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