If the unit selling price is $40,the volume of sales is $3,000,000,sales at the break-even point amount to $2,500,000,and the maximum possible sales are $3,300,000,the margin of safety is 7,500 units.

Question

Quizplus · Accepted Answer

The margin of safety is calculated as the difference between the actual sales volume and the sales at the break-even point, expressed as a percentage of the actual sales volume. Therefore, the margin of safety cannot be expressed in units. The given information in the question does not allow for the calculation of the margin of safety.

If the Unit Selling Price Is $40,the Volume of Sales