In 20A, Smith presented total variable costs at $687.50; total fixed costs at $6,750,000; sales price per unit $1,250; sold 20,000 units; tax rate at 40%. What is the margin of safety in units? 8,000 units 12,000 units 16,000 units 4,000 units

In 20A, Smith presented total variable costs at $687.50; total fixed costs at $6,750,000; sales price per unit $1,250; sold 20,000 units; tax rate at 40%. What is the margin of safety in units? 8,000 units 12,000 units 16,000 units 4,000 units

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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In 20A, Smith presented total variable costs at $687.50; total fixed costs at $6,750,000; sales price per unit $1,250; sold 20,000 units; tax rate at 40%. What is the margin of safety in units?

8,000 units

12,000 units

16,000 units

4,000 units

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