Calculation Of Margin Of Safety Ratio 543949

Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs were $8,400,000; unit sales price was $4,600; and unit variable costs were $2,200. Becker Sofa Company’s margin of safety ratio is calculated to be:

a) 71.29%.

b) 77.98%.

c) 70.83%.

d) 79.27%.

e) 73.35%.