Calculation of margin of safety ratio


Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs were $8,400,000; unit sales price was $4,600; and unit variable costs were $2,200. Becker Sofa Company's margin of safety ratio is calculated to be:

a) 71.29%.

b) 77.98%.

c) 70.83%.

d) 79.27%.

e) 73.35%.

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Accounting Basics: Calculation of margin of safety ratio
Reference No:- TGS043949

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