Hyde's Headphones sells deluxe headphones for $75 each

Accounting Feb 24, 2021

Hyde's Headphones sells deluxe headphones for $75 each. Unit variable expenses total $45. The breakeven sales in units is 2,400 and budgeted sales in units is 4,200. What is the margin of safety in dollars?

A) $24

B) $135,000

C) $495,000

D) $1,800

Expert Solution

Answer: B

Explanation: B) (4,200 - 2,400) × 75 = $135,000

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