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XYZ Inc. sells a single product for $30 per unit. Variable production costs are $18 per unit Fixed overhead costs amount $20,000 per month. Variable selling costs are $3 per unit. Fixed selling costs are $4,000 per month Last month, the company produced 10,000 units and sold 7,000 units What is the company's margin of safety? O a $130,000 Ob $20,000 OC $40,000 Od $80,000

XYZ Inc. sells a single product for $30 per unit. Variable production costs are $18 per unit Fixed overhead costs amount $20,000 per month. Variable selling costs are $3 per unit. Fixed selling costs are $4,000 per month Last month, the company produced 10,000 units and sold 7,000 units What is the company's margin of safety? O a $130,000 Ob $20,000 OC $40,000 Od $80,000

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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XYZ Inc. sells a single product for $30 per unit. Variable production costs are $18 per unit. Fixed overhead costs amount $20,000 per month Variable selling costs are $3 per unit. Fixed selling costs are $4,000 per month Last month, the company produced 10.000 units and sold 7,000 units. What is the company's margin of safety? a $130,000 b $20,000 C$40,000 Od $80,000
Transcribed Image Text:XYZ Inc. sells a single product for $30 per unit. Variable production costs are $18 per unit. Fixed overhead costs amount $20,000 per month Variable selling costs are $3 per unit. Fixed selling costs are $4,000 per month Last month, the company produced 10.000 units and sold 7,000 units. What is the company's margin of safety? a $130,000 b $20,000 C$40,000 Od $80,000
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