Question: Lamar has the following data: Selling price $ 40 Variable manufacturing cost $ 22 $165,000 per month Fixed manufacturing cost Variable selling & administrative

Lamar has the following data: Selling price $ 40 Variable manufacturing cost

Lamar has the following data: Selling price $ 40 Variable manufacturing cost $ 22 $165,000 per month Fixed manufacturing cost Variable selling & administrative costs $ 6 Fixed selling & administrative costs $135,000 per month If Lamar produces and sells 45,000 units, what is the margin of safety in units?

Step by Step Solution

3.35 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To calculate the margin of safety in units we first need to determine Lamars breakeven point in unit... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!