Accounting · Cost and Management Accounting
Dwight Co manufactures industrial LEDs. It currently produces 15,000 units. The current selling price is $40 per unit, and the variable cost is $25 per unit. The company's fixed costs are currently $180,000 per year. However, if production exceeds 16,000 units, Dwight Co must lease an additional warehouse at a cost of $45,000 per year. The company is considering an expansion to a budgeted sales level of 20,000 units. What is the Margin of Safety (as a percentage) if Dwight Co achieves its expanded budgeted sales level?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 220%
- 333.33%
- 425%✓
Correct answer
25%
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