18-11 and 19-17_For Kozy Company, actual sales are $1,107,000 and Polk Company builds custom fishing lures for sporting goods_Answer

For Kozy Company, actual sales are $1,107,000 and break-even sales are $708,480.

Compute the margin of safety in dollars and the margin of safety ratio.

Margin of safety $
Margin of safety ratio %

Exercise 19-17

Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.

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Direct materials $8.1
Direct labor $2.65
Variable manufacturing overhead $6.21
Fixed manufacturing overhead ($255,519/95,700) $2.67
Manufacturing cost per unit $19.63

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