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coors company expects sales of $340,000 (4,000 units at $85 per unit). the company's total fixed costs are $175,000 and its variable costs are $35 per unit. compute (a) break-even in units and (b) the margin of safety in dollars.

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If Coors Company expects sales of $340,000 (4,000 units at $85 per unit). The company's total fixed costs are $175,000 and its variable costs are $35 per unit. a) The break-even in units is 3500 units and (b) the margin of safety in dollars is $42,500.

How to find the Break-even in units?

a. Break-even in units

Break-even in units = Total Fixed costs ÷ Contribution margin per unit;

Break-even in units = $175,000 /  $85 per unit -  $35 per unit

Break-even in units = $175,000 /  $50 per unit

Break-even in units = 3500 units

b. Margin of safety

Margin of safety = Selling price - ( Break-even in units × selling price per units)

Margin of safety =$340,000 − (3,500 × $85)

Margin of safety =$340,000 −$297,500

Margin of safety = $42,500

Therefore the break-even in units is 3500 units and the margin of safety is $42,500.

Learn more about Break-even in units here:https://brainly.com/question/15281855

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