Boston Co.is considering the production and sale of a new product with the following sales and cost data:
unit sales price,$300; unit variable costs,$180; total fixed costs,$270,000; and projected sales,$900,000.What is the margin of safety:
(a)In dollar sales?
And (b)As a percent of sales?

Question

Boston Co.is considering the production and sale of a new product with the following sales and cost data:
 unit sales price,$300; unit variable costs,$180; total fixed costs,$270,000; and projected sales,$900,000.What is the margin of safety:
(a)In dollar sales?
 And (b)As a percent of sales?

Quizplus · Accepted Answer

The Answer of Boston Co.is considering the production and sale of a new product with the following sales and cost data:
 unit sales price,$300; unit variable costs,$180; total fixed costs,$270,000; and projected sales,$900,000.What is the margin of safety:
(a)In dollar sales?
 And (b)As a percent of sales?

Boston CoIs Considering the Production and Sale of a New Product