Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $10 while the variable cost ratio is 20%. Assuming total fixed costs of $30,000, what is the margin of safety in ($) value? O a. 122,500 O b. 162,50O O c. 82,500 O d. 102,500 Dlane of the

Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $10 while the variable cost ratio is 20%. Assuming total fixed costs of $30,000, what is the margin of safety in ($) value? O a. 122,500 O b. 162,50O O c. 82,500 O d. 102,500 Dlane of the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $10 while the
variable cost ratio is 20%. Assuming total fixed costs of $30,000, what is the margin of safety in ($) value?
O a.
122,500
O b. 162,500O
c.
82,500
O d. 102,500
O e. None of the given answers

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