what is the margin of safety in units in dollars 613946

Use this income statement to answer the questions that follow.

Sales ($50 per unit)

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$5,000

Less: Cost of goods sold ($32 per unit)

3,200

Gross margin

1,800

Less operating expenses:

Salaries

$800

Advertising

400

Shipping ($2 per unit)

200

1,400

Operating Income

$ 400

Required

  1. What is the variable cost per unit?
  2. What is the total fixed expense?
  3. What is the contribution margin per unit?
  4. What is the contribution margin ratio?
  5. What is the breakeven point in units? In dollars?
  6. What is the margin of safety in units? In dollars?
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