Smith Company produces desk lamps. The information for June indicated that the selling price was...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Smith Company produces desk lamps. The information for June indicated that the selling price was $25 per unit, variable costs were $15 per unit, fixed costs totaled $6,000, and the margin of safety in dollars was $12,500. Smith currently sells 1,100 lamps and earns $5,000 of profit. How much is Smiths margin of safety ratio?
2.5%.
40.0%.
2.2%.
45.5%.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
