Compute the margin of safety


Grissom Company estimates that variable costs will be 60% of sales, and fixed costs will total $812,700. The selling price of the product is $7.Compute the break-even point in (1) units and (2) dollars.

Breakeven sales in units units
Breakeven sales in dollars $

Compute the margin of safety in (1) dollars and (2) as a ratio, assuming actual sales are $2.70 million. (Round answers to 0 decimal places, e.g. 205,000.)

Margin of safety in dollars $
Margin of safety ratio %

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Accounting Basics: Compute the margin of safety
Reference No:- TGS0707767

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