Calcu Margin of Safety Chase Company produces and sells strings of colourful indoor/outdoor lights f
Calcu Margin of Safety Chase Company produces and sells strings of colourful indoor/outdoor lights for holiday display to retailers for $11.82 per string. The variable costs per string are as follows: Direct materials Direct labour Variable overhead Variable selling $1.87 1.70 0.57 0.42 Fixed manufacturing cost totals $334,750 per year. Administrative cost (all fixed) totals $398,500. Chase expects to sell 408,250 strings of light next year. Required: Round contribution margin ratio to four decimal places. If required, round your answers to nearest whole value. Use rounded amounts in subsequent requirements. 1. Calculate the break-even point in units. units 2. Calculate the margin of safety in units. units 3. Calculate the margin of safety in dollars.
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