Goldman Sachs Furniture Makers (GCFM) makes one piece of furniture in recent years, the banker table. It
Question:
Goldman Sachs Furniture Makers (GCFM) makes one piece of furniture in recent years, the banker table. It is a wonderful oak table, very strong and very beautiful. It has room to seat 6 people. Financial information relating to the company and product for next year is provided below.
Financial details per unit:
Selling price | $530 |
Variable selling cost | 35 |
Variable overhead cost | 25 |
Direct labour cost | 95 |
Direct material cost | 225 |
Next year, GCFM expects to make and sell 20,300 banker tables. It is expected to be a very good year due to the latest fad of people using wood tables. Fixed administrative costs are expected to total $575,000 and fixed manufacturing are expected to total $312,000.
Required: Calculate GCFM's expected margin of safety in units for next year.
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez