Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following statements about margin of safety is false? a. If only the variable cost per unit increases but the number of units

image text in transcribed
Which of the following statements about margin of safety is false? a. If only the variable cost per unit increases but the number of units sold and unit selling price and fixed cost are all constant, the margin of safety decreases. O b. If the variable cost per unit decreases but the number of units sold, unit selling price and total fixed cost are all constant, the margin of safety increases. O c. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety increases. O d. none of the given answers is false. Oe. Margin of safety measures the difference between budgeted revenues and breakeven revenues. Company XYZ produces and sells 4,000 units.at this level, the company is making a profit of $10,000. Assuming total fixed expenses of $3,000 and variable expenses per unit of $0.75, how much was the selling price per unit? O a. 1 O b. 3 C. 6 d. 8 e. 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions