# Question

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.

Required

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

## Answer to relevant Questions

Use Exhibit 3.3 shown in the body of the chapter to answer the following questions.Requireda. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point.b. Determine the expected profit if ...Lucent Manufacturing Company makes a product that it sells for $75 per unit. The company incurs variable manufacturing costs of $30 per unit. Variable selling expenses are $9 per unit, annual fixed manufacturing costs are ...Mayer Corporation sells hammocks; variable costs are $75 each, and the hammocks are sold for $125 each. Mayer incurs $240,000 of fixed operating expenses annually.Requireda. Determine the sales volume in units and dollars ...Omar Corporation manufactures faucets. The variable costs of production are $37 per faucet. Fixed costs of production are $876,000. Omar sells the faucets for a price of $61 per unit.Requireda. How many faucets must Omar ...Levine Company makes two products. The budgeted per-unit contribution margin for each product follows:Levine expects to incur fixed costs of $390,000. The relative sales mix of the products is 75 percent for Deluxe and 25 ...Post your question

0