Question

Otto Company makes a product that sells for $5 per unit. The company pays $3 per unit for the variable costs of the product and incurs fixed costs of $50,000. Otto expects to sell 30,000 units of product.

Required
Determine Otto’s margin of safety in units, sales dollars, and as a percentage. Round the percentage to one decimal place.



$1.99
Sales2
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  • CreatedMay 22, 2014
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