Olis Corporation sells a product for $130 per unit.The product's current sales are 28,900 units and its break-even sales are 25,721 units.What is the margin of safety in dollars?

Question

Quizplus · Accepted Answer

Margin of safety in dollars = Total sales - Break-even sales
= $130 per unit F1F1F1S1F1F1F10 28,900 units - $130 per unit F1F1F1S1F1F1F10 25,721 units
= $3,757,000 - $3,343,730 = $413,270

Olis Corporation Sells a Product for $130 Per Unit