Awanita Enterprises sells computer flash drives for $ 3.87 per unit. Unit variable cost is $ 0.05. The breakeven point in units is 3 comma 400, and expected sales in units are 4 comma 500. What is the margin of safety in dollars?

Margin of safety= $4,257

Explanation:

Giving the following information:

The breakeven point in units is 3,400, and the expected sales in units are 4,500.

First, we need to determine the dollar amount of sales:

Break-even point= 3,400*3.87= $13,158

Current sales= 4,500*3.87= $17,415

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

Margin of safety= 17,415 - 13,158= $4,257

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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