4 86 m Mon Jan 29 105 AM yusra abdelmeguid blackboardvcuedu

4)) 86% m, Mon Jan 29 1:05 AM yusra abdelmeguid : blackboard.vcu.edu Yahool vcu.edu-Cen.tion Service NOVA Login MindTap Th...o-Cengage Watch TV Onl..INITY Stream cu.edu-Central Authenti.. Test 1 Material-ACCT-204 Take Test: 88 quiz two Use The Following Inform... aeston Completion Status: Question 1 1 points Save Answer Use the following information to calculate margin of safety in units: In Total Volume- 6,000 units Sales Less variable expenses Contribution margin Less fixed 930,000 480,000 450,000 424,000 026,000 Always round units up to the next whole number ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DISCRIPTIONS. Click Submit to complete this assessment. Question 15 of 15 Save and Submit

Solution

Margin of Safety in Units = Actual Sales - Break Even Sales

= 6,000 Units - 5,654 Units

= 346 Units

Hence the correct answer is 346

Note :

1. Break Even Sales = Fixed Cost / Contibution Margin Per Unit

= $ 424,000 /  $ 75 per unit

= 5,653.33

= 5,654 Units

2. Contibution Margin Per Unit = Total Contibution Margin / Total Units

= $ 450,000 / 6,000 Units

= $ 75 per unit