Question

	Year 1	year 2	year 3
Sales Units	2500	2750	2900
sales Price Unit	$150.00	$          150.00	$          150.00
REVENUE	$185,000	$250,000	$440,000
	$375,000.00	$ 412,500.00	$ 435,000.00
Variable Costs:
Direct Materials	$20.00	$20.50	$26.01
Direct Labor	$17.15	$17.60	$19.22
Variable OH	$2.50	$2.53	$2.55
Fixed Costs:
Rent	80,000	$80,000	$80,000
Supervision	200,000	$205,000	$210,250
Mixed Costs:
Utilites-Fixed	20,000	20,000	20,000
Utilities-Variable	$2.50	$2.50	$2.50
Total Costs:
Variable cost per unit	$42.15	$43.13	$50.28
Fixed Costs	$300,000	$305,000	$310,250
Contribution Margin	3.74	4.12	4.34
	37%	41%	43%
Breakeven:
Sales Units
Sales Revenue
Margin of Safety:
What would be the margin of safety and the breakeven sales units and sale revenue	im not understanding what details are wrong ?

Answer 1

	Year 1	Year 2	Year 3
Sales in Units	2,500	2,750	2,900
Sales Price Per Unit	150.00	150.00	150.00
Variable Cost per Unit:
Direct Materials	20.00	20.50	26.01
Direct Labor	17.15	17.60	19.22
Variable Overhead	2.50	2.53	2.55
Utilities - Variable	2.50	2.50	2.50
Total Variable Cost per Unit	42.15	40.63	47.78
Contribution Per Unit	107.85	109.37	102.22
Contribution Margin	71.90%	72.91%	68.15%
Fixed Costs:
Rent	80,000.00	80,000.00	80,000.00
Supervision	200,000.00	205,000.00	210,250.00
Utilities	20,000.00	20,000.00	20,000.00
Total Fixed Costs	300,000.00	305,000.00	310,250.00
BEP (In Units) (Approx.)	2,782	2,789	3,035
BEP (In $) (Approx)	417,246	418,305	455,268
Sales Revenue	375,000	412,500	435,000
Margin Of Safety	42,246	5,805	20,268
BEP (In Units) = Fixed Costs / Contribution Margin per Unit
BEP (In $) = Fixed Costs / Contribution Margin Ratio
Magin of Safety = Sales - BEP (In $)