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.

 

Answer rating: 100% (QA)

To calculate GCFMs expected margin of safety in units for next year we need to first determine the e... View the full answer