Duncan Had Revenues of $900,000 in March

question 24

Essay

Duncan had revenues of $900,000 in March.Fixed costs in March were $480,000 and profit was $60,000.Answer the following questions:
a.What was the contribution margin percentage?
b.What monthly sales volume (in dollars)would be needed to break-even?
c.What was the margin of safety for March?

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Definitions:

Comparative Negligence

A legal principle that reduces the plaintiff's damages based on their percentage of fault in an accident.

Strict Product Liability

A legal doctrine that holds sellers or manufacturers liable for defective products regardless of fault or intent, as long as the product was used as intended.

Manufacturer Actions

Refers to the measures or steps taken by a manufacturer in response to product design, production, marketing, and safety concerns.

Defective Condition

A state of imperfection or malfunction in a product that makes it hazardous or unfit for its intended use.