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

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

Question

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

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

Quizplus · Accepted Answer

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

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

Use the Following Information to Determine the Margin of Safety