A manufacturer sold 6,820 units of its product at the price of $40 last year. The variable cost per unit was $24. Their degree of operating leverage was 4. What was the margin of safety (in $) for this company last year? O$ 204,600 O$ 68,200 O$ 163,680 O none of the answers listed O $ 109,120

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
A manufacturer sold 6,820 units of its product at the price of $40 last year. The variable cost per unit was $24. Their degree of
operating leverage was 4.
What was the margin of safety (in $) for this company last year?
M O$ 204,600
O$ 68,200
O $ 163,680
Onone of the answers listed
O $ 109,120
Transcribed Image Text:A manufacturer sold 6,820 units of its product at the price of $40 last year. The variable cost per unit was $24. Their degree of operating leverage was 4. What was the margin of safety (in $) for this company last year? M O$ 204,600 O$ 68,200 O $ 163,680 Onone of the answers listed O $ 109,120
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education