Units sold 1,200 Price $ 10 Sales $ 12,000 Variable manufacturing costs 4,800 Fixed manufacturing costs 2,400 Variable selling costs 1,200 Fixed administrative costs 1,200 Required: Using the data provided, compute the margin of safety and margin of safety ratio.

Margin of safety is 480 units

Margin of safety ratio is 40%

Explanation:

The Margin of Safety is the difference between sales and Breakeven sales in terms of Dollar or Volume.

First, we need to calculate the following values

Fixed cost = Fixed manufacturing costs + Fixed administrative costs =  $2,400 + 12,00 = $3,600

Variable cost = ( Variable manufacturing costs + Variable selling costs ) / Units sold = ( $4,800 + $1,200 ) / 1,200 units = $5

Contribution per unit = Selling price - Variable cost =  ) = $10 - $5 = $5

Breakeven sales = Fixed cost / Constribution = $3,600 / $5 = 720 units

To calculate the Margin of Safety, use the following formula

Margin of Safety = Sale - Breakeven sale = 1,200 units - 720 units = 480 units

Margin of safety ratio = Margin of safety / Sales = 480 units / 1,200 units = 0.40 = 40%

metallurgy is your answer

the "study of metals and the process of refining ("

note that it says metal. metallurgy has the word "metal" in it, and so is most likely your answer (and is your answer).

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answernet income for 2017 will be greater if the inventory quantity declines;