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% P3-40 (book/static) Question Help Marketing Docs prepares marketing plans for growing businesses. For 2017, budgeted revenues are $1,500,000 based on 500 marketing plans at an average rate per plan of $3,000. The company would like to achieve a margin of safety percentage of at least 45%. The companya's current fixed costs are $400,000 and variable costs average $2,000 per marketing plan. Read the requirements. $ 400,000 1,000 400 Now, determine the formula used to calculate the margin of safety in units, then calculate the result. Breakeven quantity Budgeted sales quantity 500 Margin of safety in units 100 400 Requirement 2. Which of the following changes would help Marketing Docs achieve its desired margin of safety? a. Average revenue per customer increases to $4,000; b. Planned number of marketing plans prepared increases by 5%; c. Marketing Docs purchases new software that results in a 5% increase to fixed costs but reduces variable costs by 10% per marketing plan. (Round all margin of safety percentages to the nearest whole percent, X.X%. Round breakeven units up to the next whole unit.) First, calculate the current margin of safety percentage. Margin of safety in dollars Margin of safety percentage = % Inl %x P3-40 (book/static) Question Help Marketing Docs prepares marketing plans for growing businesses. For 2017, budgeted revenues are $1,500,000 based on 500 marketing plans at an average rate per plan of $3,000. The company would like to achieve a margin of safety percentage of at least 45%. The company's current fixed costs are $400,000 and variable costs average $2,000 per marketing plan. Read the requirements. $ 400,000 $ 1,000 400 - X Requirements Now, determine the formula used to calculate the margin of safety in units, then calculate the result. Budgeted sales quantity Breakeven quantity Margin of safety in units 100 400 Breakeven revenues Budgeted revenues Fixed costs Margin of safety in dollars Variable cost per unit ng changes would help Marketing Docs achieve its desired margin of safety? a. ting Docs purchases new software that results in a 5% increase to fixed costs by pund breakeven units up to the next whole unit.) (Consider each of the following separately.) 1. Calculate Marketing Docs' breakeven point and margin of safety in units. 2. Which of the following changes would help Marketing Docs achieve its desired margin of safety? The average revenue per customer increases to $4,000. b. The planned number of marketing plans prepared increases by 5%. c. Marketing Docs purchases new software that results in a 5% increase to fixed costs but reduces variable costs by 10% per marketing plan. Ito a. | safety percentage. Margin of safety percentage % Print Done Choose from any list or enter any number in the input fields and then click Check

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