Suppose that a company has a normal capacity of production of 200.000 meters of a...
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Accounting
Suppose that a company has a normal capacity of production of 200.000 meters of a textile product. It worked under full capacity and sold every product within the year. There are no inventories neither in the beginning nor in the end of the period. Here are the following data: (a) Sales price ($/meters) 50, (b) Unit variable cost ($/meters) 30, (c) Total fixed costs ($/year) 1.800.000. What would be the margin of safety ratio if the company employs variable costing?
50%
55%
60%
65%
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