Answer:
$325,000
Explanation:
he margin of safety is the difference between the desired sale volume and the breakeven point.
The margin of safety = current sales revenue- breakeven point
current sale sales
using CVP analysis breakeven sales = fixed costs/ contribution margin per unit
Contribution margin per unit = selling price- variable cost
=$50 -$24 =$26
Break-even point = $312,000/$26 = 12,000 units
breakeven in dollar value = $12,000 x $50 = $600,000.00
The margin of safety = $925,000 - $600,000
=$325,000
