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In the Current Year, Becker Sofa Company Expected to Sell

Question 27

Multiple Choice

In the current year, Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200.
Becker Sofa Company's margin of safety (MOS) in units is:


A) 8,800.
B) 8,000.
C) 9,900.
D) 9,100.
E) 8,500.

Correct Answer:

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