Question

Cubie Corporation has provided the following data concerning its only product: Selling price$97per unit Current sales 10,300units Break-even sales 8,961units What is the margin of safety in dollars

Answer 1

the margin of safety in dollars is $129,883

Step-by-step explanation:

The computation of the margin of safety in dollars is given below:

= (Current sales units - break even sales units) × selling price per unit

= (10,300 units - 8,961 units) × $97 per unit

= 1,339 units × $97 per unit

= $129,883

Hence, the margin of safety in dollars is $129,883