Question
Divine Foods produces a gourmet condiment which sells for $16 per unit. Variable costs are $6 per unit, and fixed costs are $5,000 per month.
Divine Foods produces a gourmet condiment which sells for $16 per unit. Variable costs are $6 per unit, and fixed costs are $5,000 per month. If Divine expects to sell 1,500 units, compute the margin of safety in units.
A) 500 units
B) 1,000 units
C) 1,500 units
D) 8,000 units
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B 1000 units Explanation Sales price per unit 16 Less variable cos...Get Instant Access to Expert-Tailored Solutions
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Horngrens Accounting
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