Gould Enterprises sells computer disks for $3.16 per disk.Unit variable cost is $0.06.The breakeven point in units is 3,600,and expected sales in units are 4,300.What is the margin of safety in dollars?

Name: Gould Enterprises sells computer disks for $3.16 per disk.Unit variable cost is $0.06.The breakeven point in units is 3,600,and expected sales in units are 4,300.What is the margin of safety in dollars?
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Question

Quizplus · Accepted Answer

B)Margin of safety = (4,300 - 3,600)× $3.16 = $2,212

Gould Enterprises Sells Computer Disks for $3