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Fruit Computer Corporation makes custom fruit shaped computers. It is currently producing 40 computers per month. Data are as follows: Sales price per unit $800 Variable cost per unit. 600 Fixed costs per month 7000 If Fruit Computer Corporation expects to sell 60 units per month, how much is its margin of safety expressed in sales revenue? O $15,000 O $28,000 O $48,000 O $20,000

Fruit Computer Corporation makes custom fruit shaped computers. It is currently producing 40 computers per month. Data are as follows: Sales price per unit $800 Variable cost per unit. 600 Fixed costs per month 7000 If Fruit Computer Corporation expects to sell 60 units per month, how much is its margin of safety expressed in sales revenue? O $15,000 O $28,000 O $48,000 O $20,000

FINANCIAL ACCOUNTING
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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Fruit Computer Corporation makes custom fruit shaped computers. It is currently producing 40 computers per month. Data are as follows: Sales price per unit $800 Variable cost per unit. 600 Fixed costs per month 7000 If Fruit Computer Corporation expects to sell 60 units per month, how much is its margin of safety expressed in sales revenue? O $15,000 O $28,000 O $48,000 O $20,000
Transcribed Image Text:Fruit Computer Corporation makes custom fruit shaped computers. It is currently producing 40 computers per month. Data are as follows: Sales price per unit $800 Variable cost per unit. 600 Fixed costs per month 7000 If Fruit Computer Corporation expects to sell 60 units per month, how much is its margin of safety expressed in sales revenue? O $15,000 O $28,000 O $48,000 O $20,000
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