Lmn company produces a product that sells for 1 the

LMN Company produces a product that sells for $1. The company has
production costs of $600,000, half of which are fixed costs. Assuming
production and sales of 750,000 units, the contribution margin per unit is $.60
VC = $300,000/$750,000 units = $0,40/unit; CM = $1 - $.40 = $.60
Managers make assumptions in CVP analysis. These assumptions include:
- Constant variable cost per unit.
- Constant selling price per unit
- Constant total fixed costs
A company has break-even sales of $200,000. If the company expects sales of
$500,000, the margin of safety is 60%