Margin of safety asssuming slabs are budgeted, Accounting Basics

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Margin of safety asssuming slabs are budgeted

Problem:

Stones manufacturing, sells a marble slab for $1000. Fixed costs are $30,000, While the variable costs are $400 per slab. The company currently plans to sell 200 slabs this month.

Required:

Question: What is the margin of safety asssuming 75 slabs are budgeted?

Note: Please show how you came up with the solution.

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Accounting Basics: Margin of safety asssuming slabs are budgeted

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Accounting Basics: Margin of safety asssuming slabs are budgeted

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