During the Current Year,Vanguard Company Sold 80,000 of Its Only

question 130

Essay

During the current year,Vanguard Company sold 80,000 of its only product at a selling price of $60 per unit.Variable costs were $18 per unit,and Vanguard's margin of safety for the year was 25,000 units.
Required:
1)Calculate Vanguard's margin of safety ratio for the current year.
2)What was the amount of Vanguard's fixed costs for the current year?

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Definitions:

Positive Economic Analysis

The branch of economics that concerns the description and explanation of economic phenomena, focusing on factual and cause-and-effect relationships.

Financial Aid

Monetary assistance provided to individuals to support them in covering the costs of education, housing, or other expenses.

Normative Statement

Statements that express opinions about what ought to be, reflecting values or judgements rather than factual assertions.

Social Security

A government program that provides financial assistance to people with an inadequate or no income, primarily the elderly, disabled, and families of deceased workers.