Brian's Bait shop had budgeted bait sales for the season at 15,000, with a $7,000 margin of safety

Management Aug 08, 2020

Brian's Bait shop had budgeted bait sales for the season at 15,000, with a $7,000 margin of safety. however due to unseasonable weather, bait sales reached only 14,100. Actual sales exceeded break even sales by what amount?

Expert Solution

Break-even Sales in Dollars = Expected Sales - Margin of Safety in Dollars

= $15,000? - $7,800

Break-even Sales in Dollars = $7,200

Actual Sales exceeded? Break-even Sales by:

= $14,100 - $7,200

= $6,900

Actual sales exceeded? break-even sales by $6,900

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