Murdoch Corporation has provided the following data concerning its only product: What is the margin of safety in dollars?

Question

Murdoch Corporation has provided the following data concerning its only product:  What is the margin of safety in dollars?

Quizplus · Accepted Answer

Margin of safety in dollars:
Break-even sales = $230 per unit F1F1F1S1F1F1F10 29,716 units = $6,834,680
Current sales = $230 per unit F1F1F1S1F1F1F10 39,100 units = $8,993,000
Margin of safety in dollars = Sales - Break-even sales
= $8,993,000 - $6,834,680 = $2,158,320

Murdoch Corporation Has Provided the Following Data Concerning Its Only