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Homework answers / question archive / Mississippi Mile Travel Company is conducting a sensitivity analysis in order to assess the company's margin of safety in units and in dollars

Mississippi Mile Travel Company is conducting a sensitivity analysis in order to assess the company's margin of safety in units and in dollars

Accounting

Mississippi Mile Travel Company is conducting a sensitivity analysis in order to assess the company's margin of safety in units and in dollars. Predicted data indicate that 4,750 travel package sales can be expected while 2,200 package sales are necessary to meet the company's breakeven point. Each travel package costs $3,000. Calculate the company's margin of safety in package units and dollars.

A) 2,200 travel package units; $5,610,000

B) 2,550 travel package units; $7,650,000

C) 3,500 travel package units; $8,010,000

D) 1,575 travel package units; $4,810,000

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