Koelsch Corporation's Only Product Sells for $170 Per Unit

question 82

Essay

Koelsch Corporation's only product sells for $170 per unit. Its current sales are 43,600 units and its break-even sales are 39,240 units.
Required:
Compute the margin of safety in both dollars and as a percentage of sales.

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Definitions:

Two-factor Theory

A psychological theory suggesting that there are separate sets of factors that cause job satisfaction and job dissatisfaction; introduced by Frederick Herzberg.

Method Bound

Referencing the limitation of a problem-solving or operational process to a specific methodology or approach.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act in certain ways based on the expected outcomes and the attractiveness of those outcomes.

Work Motivation

The set of psychological forces that influence an individual's behavior in a work setting, including their energy, direction, and persistence.