Falls Company has budgeted sales of $120,000 based on 80,000 units.The margin of safety is $1,000.What is the break-even point in dollars?
A) $81,000
B) $119,000
C) $120,000
D) $121,000

Question

Quizplus · Accepted Answer

The margin of safety is the difference between actual or budgeted sales and break-even sales. Given the margin of safety is $1,000, the break-even point is $120,000 - $1,000 = $119,000.

Falls Company Has Budgeted Sales of $120,000 Based on 80,000