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A. $1,000 B. $5,000 C. $6,000 D. $8,000 [Fact Pattern #2] A company is attempting to determine the optimum sales price for a new product
A. $1,000 B. $5,000 C. $6,000 D. $8,000 [Fact Pattern #2] A company is attempting to determine the optimum sales price for a new product and knows t to be competitive the new product must sell for $75 or less per unit. Fixed expenses are estimated at $150,000 for production levels up to 4,000 units, and variable expenses at 4,000 units are projected at $40,000. [6] (Refers to Fact Pattern 2) What is the margin of safety in sales dollars if the sales price for 3,500 units is $70 per unit? A. $35,000 B. $60,000 C. $70,000 D. $95,000 215 Answer Key doc 0 215 Answer Key doc
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