## Answers

**Answer:**

Selling price per unit = $1,100

Variable cost per unit = $550

Contribution Margin per unit = Selling price per unit - Variable cost per unit

Contribution Margin per unit = $1,100 - $550

Contribution Margin per unit = $550

Contribution Margin ratio = Contribution Margin per unit / Selling price per unit * 100

Contribution Margin ratio = $550 / $1,100 * 100

Contribution Margin ratio = 50%

Break Even Sales = Fixed Cost / Contribution Margin ratio

Break Even Sales = $33,000 / 0.50

Break Even Sales = $66,000

Current Sales = 85 * $1,100

Current Sales = $93,500

Margin of Safety (in Dollar) = Current Sales – Break Even Sales

Margin of Safety (in Dollar) = $93,500 - $66,000

**Margin of Safety (in Dollar) = $27,500**

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