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Jarvis Foods Produces a Gourmet Condiment Which Sells for $10

Question 105

Multiple Choice

Jarvis Foods produces a gourmet condiment which sells for $10.00 per unit. Variable costs are $7.50 per unit, and fixed costs are $18,000 per month. Jarvis is currently selling 8,000 units per month. How much is Jarvis's margin of safety expressed in units?


A) 250 units
B) 800 units
C) 160 units
D) 40 units

Correct Answer:

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