cuming total fixed costs of $30,000, what is the margin of safety in ($) value?
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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![Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $6 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. 142,500
O c. None of the given answers
O d. 82,500
O e. 102,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92fb513c-5554-43a0-9e72-a762404859c6%2F200df844-2953-4e3f-a53d-cda49917c03e%2F6ga850p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $6 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. 142,500
O c. None of the given answers
O d. 82,500
O e. 102,500
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