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. None of the given answers O b. 3,200 units C. 2,000 units d. 4,000 units e. 6,000 units

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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:
a. None of the given answers
b. 3,200 units
C. 2,000 units
d. 4,000 units
e. 6,000 units
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: a. None of the given answers b. 3,200 units C. 2,000 units d. 4,000 units e. 6,000 units
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