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  3. margin of safety comer company produces and sells

Margin of Safety Comer Company produces and sells strings of colorful Indoor/outdoor lights for holiday...

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Accounting

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Margin of Safety Comer Company produces and sells strings of colorful Indoor/outdoor lights for holiday display to retailers for $13.02 per string. The variable costs per string areas follows: Direct materials $1.87 AL... Direct labor 1.70 Variable factory overhead 0.57 Variable seiling expense 0.42 Fixed manufacturing cost totals $630,270 per year. Administrative cost (all fixed) total $415,386. Comer expects to sell 248,100 strings of light next year. Required: 1. Calculate the break-even point in units. units TAL. 2. Calculate the margin of safety in units units 3. Calculate the margin of safety in dollars 4. Conceptual Connection: Suppose Comer actually experiences a price decreate next year while all other costs and the number of units sold remain the same. Would this increase or decrease ink for the company? Hint: Consider what would happen to the number of break-even units and to the margin of safety)

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