Majid Corporation sells a product for $210 per unit. The product's current sales are 42,600 units and its break-even sales are 35,940 units. What is the margin of safety in dollars

Respuesta :

Answer:

the margin of safety in dollars is $1,398,600

Explanation:

The computation of the margin of safety in dollars is shown below:

The Margin of safety in dollars is

= (current sales units - break-even sales units) × selling price per unit

= (42,600 units - 35,940 units) × $210

= $1,398,600

hence, the margin of safety in dollars is $1,398,600

We simply applied the above formula

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