Acompany makes a single product that it sells for $16 per unit. fixed costs are $76,800 per month and the product has a contribution margin ratio of 40%. if the company's actual sales are $224,000, its margin of safety is:

Margin of safety = 2,000 units

Explanation:

Margin of Safety =Total units sold-Break-even point

where Total units sold = =14,000 units

Break even point =

The contribution per unit can be deduced from the contribution margin ratio as follows:

Contribution margin ratio==40%

this implies that Contribution Margin=40%*Sales

Given a selling price of $16/unit, contribution per unit = 0.4*$16=$6.40

therefore :

Break even point = =12,000 Units

Margin of Safety =Total units sold-Breakeven point= 14,000 units -12,000 units = 2,000 units

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answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;