cuming total fixed costs of $30,000, what is the margin of safety in ($) value?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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