The Smith Corporation has the following data for current year: $$\begin{array} { l l }
\text { Selling price per unit } & \$ 15 \
\text { Variable cost per unit } & \$ 9 \
\text { Fixed costs } & \$ 45,000 \
\text { Units sold } & 10,000 \text { units }
\end{array}$$
- What will the margin of safety in units be (rounded to the nearest whole unit)?

Question

The Smith Corporation has the following data for current year: $$\begin{array} { l l } 
\text { Selling price per unit } & \$ 15 \
\text { Variable cost per unit } & \$ 9 \
\text { Fixed costs } & \$ 45,000 \
\text { Units sold } & 10,000 \text { units }
\end{array}$$
- What will the margin of safety in units be (rounded to the nearest whole unit)?

Quizplus · Accepted Answer

The Answer of The Smith Corporation has the following data for current year: $$\begin{array} { l l } 
\text { Selling price per unit } & \$ 15 \
\text { Variable cost per unit } & \$ 9 \
\text { Fixed costs } & \$ 45,000 \
\text { Units sold } & 10,000 \text { units }
\end{array}$$
- What will the margin of safety in units be (rounded to the nearest whole unit)?

The Smith Corporation Has the Following Data for Current Year