Boston Company is considering the production and sale of a new product with the following sales and cost data:
Unit sales prices is $300;
unit variable costs is $180;
total fixed costs is $270,000; and
projected sales is $900,000.
Show calculations to find what is the margin of safety: In dollar sales? As a percent of sales?© BrainMass Inc. brainmass.com October 4, 2022, 1:48 pm ad1c9bdddf
Margin of safety = Current sales - Breakeven sales
Current sales = $900,000
Breakeven sales = ...
The solution explains how to determine the margin of safety in dollars and percent of sales with step by step calculations.