Rosner Corporation sells a product for $150 per unit. The product's current sales are 32,500 units and its break-even sales are 24,050 units.
-What is the margin of safety in dollars?

Name: Rosner Corporation sells a product for $150 per unit. The product's current sales are 32,500 units and its break-even sales are 24,050 units. -What is the margin of safety in dollars?
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

The margin of safety in units is 32,500 - 24,050 = 8,450 units. In dollars, it is 8,450 units * $150/unit = $1,267,500.

Rosner Corporation Sells a Product for $150 Per Unit