The Company is planning to sell Product Z for $10 a unit. Variable costs are $6 a unit and fixed costs are $100,000. If the company is currently selling 30,000 units, what is the margin of safety in units?
A)5,000
B)10,000
C)25,000
D)20,000

Question

Quizplus · Accepted Answer

11eb16ac_dffd_572a_984d_8dbd3fe9b89d_TB6154_00 With sales volume of 30,000 units, the margin of safety would be 30,000 - 25,000 or 5,000 units.

The Company Is Planning to Sell Product Z for $10