Q1) Penury Company presents two products. Currently, the following represents usual results of a month\'s operations:
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Product K
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Product L
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|
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Per
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Per
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Combined
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Amount
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Unit
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Amount
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Unit
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Amount
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Sales revenue.....................
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$120,000
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$1.20
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$80,000
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$0.80
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$200,000
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Variable expenses..............
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60,000
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0.60
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60,000
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0.60
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120,000
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Contribution margin..........
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$ 60,000
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$0.60
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$20,000
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$0.20
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80,000
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Fixed expenses..................
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50,000
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Net operating income........
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|
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$ 30,000
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Determine margin of safety in terms of dollars.