Homework answers / question archive / The manager at Tom's Taxidermy expects to sell 800 units at $30 each unit

The manager at Tom's Taxidermy expects to sell 800 units at $30 each unit

Accounting

Share With

The manager at Tom's Taxidermy expects to sell 800 units at $30 each unit. In order for the manager to breakeven, the manager must sell 400 units. What is the margin of safety in dollars?

A) $12,000

B) $14,000

C) $16,000

D) $24,000

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Answer: A

Explanation: A)

800 units × $30 = $24,000

400 units × $30 = 12,000

Margin of safety in dollars: $24,000 - $12,000 = $12,000 margin of safety

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)

Related Questions

At January 1 2022 Oriole Company reported the following property plant and equipment accounts Accumulated depreciationbuildings Accumulated depreciation equipment Buildings Equipment Land 63
An effective managerial accounting system should track information about an organization39s activities in which of the following areas a
Which of the following is NOT a required disclosure with respect to liabilities a details of assets pledged as collateral b payment terms for trade accounts payable c maturity dates and interest rates for each outstanding bond issue d future payments and maturity amounts for each of the next five years
At December 31 2019 Novak Corporation had the following stock outstanding
Aye Ltd acquired 90 interest in Bee Ltd on 1 January 20x1 for which the purchase consideration was structured as follows Cash of 800000
AWhat are the methods of making a buyback and a delisting offer Are the procedural requirements different and if so in what respect B
AC574 ndash Quiz 3 Review Questions 1 TCO C Which statement is false A
You are auditing payroll for the Reel In Technologies company for the year ended October 31 2019
The transfer price becomes Select one O a
Question 4 Not complete Marked out of 100 P Rag question Bankruptcy Risk and ZScore Analysis Following are selected ratios for Logitech International SA for the company39s 2019 fiscal year

menu