Upgrade to macoS High ea eztomheducationcomhmp E connect Sie

Upgrade to macoS High ea ezto.mheducation.com/hmp E connect Sieve &Ext; Suoet h the current year, Decker Sofe Compeny expected to sell 12,000 eather sofs Fed conts for the year were expected to be $31,400,000 unit sales price w veriable costs were expected to be $2.200 t budgeted a $4,600, and un Becker Soh Company\'s margin of safetyretio pos?is-nded to two detre\' place 07129% 70m O 7335

Solution

SP = 4600

VC = 2200

Contribution pu = 4600 – 2200 = 2400

Fixed cost = 8400000

BEP = Fixed cost/cont pu

      = 8400000/2400 = 3500 units

Units expected to sold = 12000 units

Margin of safety = (Units sold – BEP)/Units sold

      = (12000 – 3500)/12000 = 70.83%

Third option is correct