Brewer Corporation estimated its quarterly break-even sales for 2017 to be 45,800 units, priced at $38 each.

Question:

Brewer Corporation estimated its quarterly break-even sales for 2017 to be 45,800 units, priced at $38 each. Its actual sales for the year amounted to $7,752,000 and actual quarterly fixed expenses were $618,250.

Required:

1. Compute the annual margin of safety in units and dollars.

2. Compute the contribution margin per unit.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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