Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following statements about margin of safety is false? O a. If only the fixed costs increase but the number of units sold

image text in transcribed
Which of the following statements about margin of safety is false? O a. 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 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. Margin of safety measures the difference between budgeted revenues and breakeven revenues. O d. 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. e none of the given answers is false. Company XYZ produces and sells 40,000 units.at this level, the company is making a profit of $37.000. Assuming total fixed expenses of $3.000 and variable expenses per unit of $2. how much was the selling price per unit? a. 3 bi 6 c1 4 e. 8

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Interpretation And Application Of International Standards On Auditing

Authors: Steven Collings

1st Edition

0470661127, 978-0470661123

More Books

Students also viewed these Accounting questions