A company needs to sell 10,000 units of its only product in order to break even. Fixed
Question:
A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are
$110,000, and the 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:
a. $0
b. $20,000
c. $110,000
d. $200,000
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Step by Step Answer:
Choice a is incorrect There is no margin of safety when total sal...View the full answer
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Related Book For 
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
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