The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year.If Griffith Corporation is able to achieve the budgeted level of

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Sales Price Per Unit = Total Sales / Units Sold
Sales Price Per Unit = $1,000,000 / 50,000
Sales Price Per Unit = $20
Revenues - Variable Costs = Contribution Margin
$1,000,000 - ($270,000 + $240,000 + $150,000 + $50,000) = Contribution Margin
$1,000,000 - $710,000 = $290,000
$290,000 / 50,000 units to be sold = $5.80 budgeted contribution margin per unit
Contribution Margin Ratio = $5.80/ $20
Contribution Margin Ratio = 29%
Breakeven sales = Total Fixed Costs / Contribution Margin Ratio
Breakeven sales = $210,000 / 29%
Breakeven sales = $724,138
Margin of Safety in Dollars = Budgeted Sales - Breakeven Sales
Margin of Safety in Dollars = $1,000,000 - $724,138
Margin of Safety in Dollars = $275,862

The Budgeted Income Statement Presented Below Is for Griffith Corporation