Question

In: Accounting

ABC Company produces and sells four products. Information about these products for 2019, the most recent...

ABC Company produces and sells four products. Information about these products
for 2019, the most recent year, appears below:

      Product A Product B Product C Product D
selling price per unit 19.00 16.00 15.00 12.00
variable costs per unit 5.00 13.00 5.00 6.00
number of units sold 39,000 32,000 15,000 28,000

ABC Company had total fixed costs of $648,000 in 2019.

Calculate the margin of safety reported by ABC Company for 2019.

Calculate the number of units of Product D that needed to be sold in 2019 in order
for ABC Company to earn a profit of $144,000.

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