Fontaine Corp

question 34

Multiple Choice

Fontaine Corp.has a selling price of $15 and variable costs of $10 per unit.When 10,000 units are sold,profits equaled $25,000.What is the margin of safety?

• A)$75,000
• B)$25,000
• C)$105,000
• D)$50,000

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Definitions:

Intrinsic

Referring to the inherent or essential qualities of something, not dependent on external factors.

Extrinsic Freedom

Refers to freedom limited or determined by external factors or circumstances.

Determinists

The belief that all events, including moral choices, are determined completely by previously existing causes, in relation to the philosophical idea that every event or state of affairs, including every human decision and action, is the necessary result of antecedent states of affairs.

Free Choices

The ability or power to make decisions without constraints, enabling one to act on one's own volition.