Zhao Company has fixed costs of $442,200. Its single product sells for $189 per unit, and...

 

Transcribed Image Text:

Zhao Company has fixed costs of $442,200. Its single product sells for $189 per unit, and variable costs are $123 per unit. If the company expects sales of 10,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. a. Margin of safety (in dollar) b. Margin of safety (%) Zhao Company has fixed costs of $442,200. Its single product sells for $189 per unit, and variable costs are $123 per unit. If the company expects sales of 10,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. a. Margin of safety (in dollar) b. Margin of safety (%)

Answer rating: 100% (QA)

To compute the margin of safety for Zhao Company we first need to calculate the contribution margin ... View the full answer