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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
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
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