Question
A retail firm has a sales price of $23 per unit and variable costs of $11.00 per unit. The firms margin of safety is 3,000
A retail firm has a sales price of $23 per unit and variable costs of $11.00 per unit. The firms margin of safety is 3,000 units (they are selling 3,000 units more than the break-even point in units). Operating income would be:
| $33,000 | ||
| would need to know fixed costs to determine operating income at this level of sales | ||
| $36,000 | ||
| $69,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Essentials For Hospitality Managers
Authors: Chris Guilding
3rd Edition
0415841097, 978-0415841092
