Posted by: Pdfprep
Post Date: January 21, 2021
Each division of Calcul Co manufactures a single product.
In one of the divisions the standard profit of each unit is calculated as:
Selling price$135
Total cost$100
Profit$35
It is estimated that fixed costs comprise 54% of the total cost of the product. The budgeted production and sales volumes for the next month is 3,954 units.
What is the margin of safety?
A . 39・3%
B . 43・2%
C . 56・8%
D . 60・7%
Answer: A
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