BE = 900(25-5) = 450
Margin safety = budgeted - break even
1000-450 = 550
550(25)-450(25) = 2500
Percentage = 2500/(550*25) = 18.18%
None of these
Pattillo Industries makes a product that sells for $25 a unit. The product has a $5 per unit variable cost and total fixed costs of $9,000. At budgeted sales of 1,000 units, the margin of safety percentage is 45%, 55%, 64%, none of these
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1 answer