Question: Exercise 20.10 (Algo) Computing Contribution Margin Ratio and Margin of Safety (LO20-4, LO20-5) The following information relates to the only product sold by Mastrolia Manufacturing.
Exercise 20.10 (Algo) Computing Contribution Margin Ratio and Margin of Safety (LO20-4, LO20-5) The following information relates to the only product sold by Mastrolia Manufacturing. Sales price per unit $ 45 Variable cost per unit 27 Fixed costs per year 296,000 a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars). a. Contribution margin ratio % Break even sales dollars b. Margin of safety (in dollars)
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