Gibson Company makes a product that sells for $33 per unit. The company pays $24 per unit for the variable costs of the product and incurs annual fixed costs of $84,600. Gibson expects to sell 21,600 units of product. Required Determine Gibson’s margin of safety expressed as a percentage.

Margin of safety ratio= 0.5648= 56.48%

Explanation:

Giving the following information:

Selling price= $33

Unitary variable cost= $24

Fixed costs= $84,600

Units sold= 21,600

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

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 84,600 / (33 - 24)

Break-even point in units= 9,400 units

Now, the margin of safety:

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= (21,600 - 9,400)/21,600

Margin of safety ratio= 0.5648= 56.48%

answer; i believe the correct answer is (4.0);

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.