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The Following Monthly Data Are Available for Kratzberg, Inc

Question 178

Essay

The following monthly data are available for Kratzberg, Inc. which produces only one product which it sells for $18 each. Its unit variable costs are $8, and its total fixed expenses are $15,000. Actual sales for the month of May totaled 2,000 units.
Instructions
Compute the margin of safety in units and dollars for the company for May.

Correct Answer:

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BEP in units: $18X - $8X - $15,000 = 0
B...

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