need help with C and D Exercise 1119 Margin of safety LO 116

need help with C and D

Exercise 11-19 Margin of safety LO 11-6 Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating $ 169 $81 costs $563,200 Required Determine the following a. Contribution margin per unit. Answer is complete and correct. S 88 per unit margin

Solution

c) Required unit sale = (563200+211200)/88 = 8800 Units

d) Margin of safety units = 8800-6400 = 2400 Units

Margin of safety sales = 2400*169 = $405600

Margin of safety percentage = 405600*100/1487200 = 27.3%