The following monthly data are available for crane company. which produces only one product: selling price per unit, $38; unit variable expenses, $14; total fixed expenses, $42000; actual sales for the month of june, 2000 units. how much is the margin of safety for the company for june?

Margin of safety= 250 units

Explanation:

Giving the following information:

Selling price per unit, $38; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units.

First, we need to calculate the break-even point in units.

Break-even point= fixed costs/ contribution margin

Break-even point= 42,000/(38-14)= 1,750 units

Margin of safety= current unit sales - break-even point= 2,000 - 1,750= 250 units

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explanation:

we're are the selections to pick from?

answer; only identify and interpret trends in the marketplace;