Head-First Company plans to sell 5,120 bicycle helmets at $74 each in the coming year. Unit...

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Head-First Company plans to sell 5,120 bicycle helmets at $74 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 1,707. Required: 1. Calculate the margin of safety in terms of the number of units. X units 2. Calculate the margin of safety in terms of sales revenue. x Head-First Company plans to sell 5,120 bicycle helmets at $74 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 1,707. Required: 1. Calculate the margin of safety in terms of the number of units. X units 2. Calculate the margin of safety in terms of sales revenue. x

Answer rating: 100% (QA)

Answer 1 Margin of safety in terms of units A... View the full answer