In 2013, Vanguard Company Sold 80,000 of Its Only Product

question 77

Essay

In 2013, 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 2013.
2. What was the amount of Vanguard's fixed costs for 2013?

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Definitions:

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The process by which members of the United States Congress, including both the House of Representatives and the Senate, are elected by the American people.

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A political party active in the middle of the 19th century in the United States that advocated for federal government support for a more industrial and modern economy.

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Members of the Republican Party, a political party in the United States known for its conservative positions on economic and social issues.

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a political party in the United States that emerged from the split of the Democratic-Republican Party, advocating for a strong centralized government and a protective tariff, active in the 1820s to 1830s.