If Narchie sells 24,000 units,its safety margin will be:

Question

Quizplus · Accepted Answer

To calculate the safety margin, we need to subtract the break-even point from the actual sales. As the question does not provide the fixed and variable costs, we cannot calculate the break-even point. Therefore, we cannot calculate the exact safety margin. However, we can eliminate options C, D, and E as they are very high and unrealistic values for the safety margin of selling only 24,000 units. Option B is also a high value but could be possible depending on the company's fixed and variable costs. Option A seems like the best choice as it is a more reasonable value for the safety margin of selling 24,000 units.

If Narchie Sells 24,000 Units,its Safety Margin Will Be