A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are $110,000, and per unit selling price and variable costs are $20 and $9, respectively. If total sales are $220,000, the company’s margin of safety will be equal to: $0 $20,000 $110,000 $200,000
A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are $110,000, and per unit selling price and variable costs are $20 and $9, respectively. If total sales are $220,000, the company’s margin of safety will be equal to: $0 $20,000 $110,000 $200,000
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7MC: Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and...
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A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are $110,000, and per unit selling price and variable costs are $20 and $9, respectively. If total sales are $220,000, the company’s margin of safety will be equal to:
- $0
- $20,000
- $110,000
- $200,000
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