Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $9 while the variable cost ratio is 20%. Assuming total fixed costs of $30,000, what is the margin of safety in ($) value? O a. 82,500 O b. 102,500 O c. 142,500 O d. 122,500 e. None of the given answers

Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $9 while the variable cost ratio is 20%. Assuming total fixed costs of $30,000, what is the margin of safety in ($) value? O a. 82,500 O b. 102,500 O c. 142,500 O d. 122,500 e. None of the given answers

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

25*

Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $9 while
the variable cost ratio is 20%. Assuming total fixed costs of $30,000, what is the margin of safety in
($) value?
a. 82,500
O b. 102,500
C. 142,500
O d. 122,500
e.
None of the given answers

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