00:01
Hello students we are given a question here headman corporation has provided the following contribution format income statement okay assume that the following information is within the relevant range.
00:13
So we are given here some data we are asked about the margin of safety percentage.
00:18
Okay students so first of all we are supposed to know that here contribution margin ratio contribution margin ratio okay it can be written as contribution margin contribution margin okay students and divided by divided by sales so basically it should be like contribution margin is given as here 67 ,500 okay 67 ,500 and divided by sales.
01:01
Sales is given as a 2 .70 ,000.
01:05
2 .70 ,000.
01:08
So basically we can say that 2 zeros will be automatically cancelled out with 2 zeros and then when we solve it.
01:15
What we get it will be 0 .25.
01:18
Okay students now here we are supposed to know that break even, break even, sorry, we can write that the break e1 can be written as fixed cost, fixed cost, okay, students and divided by contribution, contribution margin ratio.
01:51
So here, fixed cost is given as we can see, 63 ,750, it is fixed expenses or fixed cost 63 ,750 divided by, contribution margin error margin ratio we have calculated which is 0 .25.
02:10
So what we can get here, it will be when we solve it, 2 ,05 ,000...