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CSecure | https//bblearn.callutheran.edu/webapps/assessment/take/take, Pac-12 TV Networks sports N Netflix ¥VHLG ps NoodleTools : MLA/Pac-12 TV Networks > Moving to another question will save this response. estion 16 A company that makes organic fertlizer has supplied the folloving data: Bags produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income 280,80 s 1,568,880 s 668,8ee 448,eee S. 18e , 880 S 214,eee 5 58,888 The company's margin of safety in units is closest to , 115,128 units 16,111 units 168,986 units O 100,444 units Moving to another question will save this response 0 Type here to search

Explanation / Answer

Per unit Sales 7.8 =1560000/200000 Variable costs 4.2 =(660000+180000)/200000 Contribution margin 3.6 Break even point in units = Fixed costs/Unit contribution margin = (448000+214000)/3.6= 183889 Margin of safety =200000-183889= 16111 Option 2 is correct

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