In 2013, Vanguard Company sold 80,000 of its only product at a selling price of $60 per unit. Variable costs were $18 per unit, and Vanguard's margin of safety for the year was 25,000 units.
Required:
1. Calculate Vanguard's margin of safety ratio for 2013.
2. What was the amount of Vanguard's fixed costs for 2013?

Question

Quizplus · Accepted Answer

The Answer of In 2013, Vanguard Company sold 80,000 of its only product at a selling price of $60 per unit. Variable costs were $18 per unit, and Vanguard's margin of safety for the year was 25,000 units.
Required:
1. Calculate Vanguard's margin of safety ratio for 2013.
2. What was the amount of Vanguard's fixed costs for 2013?

In 2013, Vanguard Company Sold 80,000 of Its Only Product