Ewing Computers makes and sells circuit boards. Each circuit board sells for an average of $225 and has a variable cost of $165. The company experiences total fixed costs of $210,000. For 2021, the company has budgeted to sell 5,000 circuit boards.



Required:

Calculate the margin of safety in units, revenue dollars and percentage.
Variable costs per unit have increased by 5% while sales revenue per unit has decreased by 3%. Calculate the new margin of safety in units, revenue dollars and percentage.

Answer rating: 100% (QA)

The contribution margin per unit is the selling price per unit minus the variable cost per unit whic... View the full answer