Lamar Has the Following Data -
If Lamar Produces and Sells 30,000 Units, What Is

question 146

Multiple Choice

Lamar has the following data:
$$\begin{array} { l l } \text { Selling Price } & \$ \quad40 \\\text { Variable manufacturing cost } & \$\quad 22 \\\text { Fixed manufacturing cost } & \$ 150,000 \text { per month } \\\text { Variable selling \& administrative costs } & \$ \quad 6 \\\text { Fixed selling \& administrative costs } & \$ 120,000 \text { per month }\end{array}$$

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If Lamar produces and sells 30,000 units, what is the margin of safety in units?

• A) 5,000 units.
• B) 7,500 units.
• C) 22,500 units.
• D) 30,000 units.

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Definitions:

Instrument

A legal document that formally documents a legal or financial transaction or agreement.

Shelter Rule

A legal principle that protects buyers in good faith of personal property under the Uniform Commercial Code from subsequent claims of ownership.

Common Law

A legal system based on court decisions and customs, as opposed to written laws.

Comparative Negligence

A legal doctrine that reduces the amount of damages that a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to the cause of their injuries.