Unit# 6 - Test Bank #2 - Part D

The New Age Pet Store sells Diva Doggie pet waste disposal systems for $55 each. The systems include the unit and a one-year supply of enzyme digester waste terminator. The cost of the unit and enzyme is $39.60. The only other costs are fixed costs of $4,466. During the current period, New Age sold 690 of the units through the stores new on-line catalog division.

Please answer - PART D - What is the margin of safety in units? In dollars?

(a) Your answer is correct. What is the contribution margin per unit? (Round answer to 2 decimal places, e.g. 1.64.) 15.40 Contribution margin