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Exercise 20.10(Algo) Computing Contribution Margin Ratio and Margin of Safety (LO20-4, LO20-5) The following...

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Accounting

Exercise 20.10(Algo) Computing Contribution Margin Ratio and Margin of Safety (LO20-4, LO20-5)
The following information relates to the only product sold by Mastrolia Manufacturing.
Sales price per unit $ 45
Variable cost per unit 27
Fixed costs per year 293,000
a. Compute the contribution margin ratio and the dollar sales volume required to break even.
b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).

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