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Use the Following Information to Determine the Margin of Safety

Question 73

Multiple Choice

Use the following information to determine the margin of safety in dollars:  Unit sales 50,000 units  Dollar sales $500,000 Fixed costs $204,000 Variable costs $187,500\begin{array}{ll}\text { Unit sales } & 50,000 \text { units } \\\text { Dollar sales } & \$ 500,000 \\\text { Fixed costs } & \$ 204,000 \\\text { Variable costs } & \$ 187,500\end{array}


A) $88,500
B) $108,500
C) $173,600
D) $326,400
E) $500,000

Correct Answer:

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