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Masirah Company sold 6,000 units of its product resulting in $60,000 of sales revenue, $30,000 of variable costs, and $14,000 of fixed costs. If variable costs decrease by $2 per unit, the new margin of safety in units is: O a. 2,000 units O b. None of the given answers O c. 4,000 units O d. 6,000 units O e. 3,200 units

Masirah Company sold 6,000 units of its product resulting in $60,000 of sales revenue, $30,000 of variable costs, and $14,000 of fixed costs. If variable costs decrease by $2 per unit, the new margin of safety in units is: O a. 2,000 units O b. None of the given answers O c. 4,000 units O d. 6,000 units O e. 3,200 units

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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Masirah Company sold 6,000 units of its product resulting in $60,000 of sales revenue, $30,000 of variable costs, and $14,000 of fixed costs. If variable costs decrease by $2 per unit, the new margin of safety in units is: O a. 2,000 units of O b. None of the given answers O c. 4,000 units O d. 6,000 units O e. 3,200 units tion Mazoon Company has fixed costs of $15,000 and a breakeven point of 600 units. If the company plans to produce 750 units, and sales increase by 10%, soperating income will increase by: ed O a. 60% dout of O b. 50% None of the given answers ag O d. 20% ion O e. 30% Esc FOLock F2 F1 F3 F4 F5 F9 @ 2# & 2 3 5 7 V Y U 40 A S G YHi J K 1. 133 93 ZI C V) B Ni M 24 S 00 CO U 1: 41
Transcribed Image Text:Masirah Company sold 6,000 units of its product resulting in $60,000 of sales revenue, $30,000 of variable costs, and $14,000 of fixed costs. If variable costs decrease by $2 per unit, the new margin of safety in units is: O a. 2,000 units of O b. None of the given answers O c. 4,000 units O d. 6,000 units O e. 3,200 units tion Mazoon Company has fixed costs of $15,000 and a breakeven point of 600 units. If the company plans to produce 750 units, and sales increase by 10%, soperating income will increase by: ed O a. 60% dout of O b. 50% None of the given answers ag O d. 20% ion O e. 30% Esc FOLock F2 F1 F3 F4 F5 F9 @ 2# & 2 3 5 7 V Y U 40 A S G YHi J K 1. 133 93 ZI C V) B Ni M 24 S 00 CO U 1: 41
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