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:

Global Markets

The overarching and interconnected marketplace made up of buyers and sellers from all around the world, transcending national borders.

Cultural Differences

The variations in the customs, values, norms, and social practices among people and societies from different parts of the world.

International Firms

International firms are businesses that operate across national borders, engaging in foreign trade or investment, reflecting their global market presence.

International Firm

A company that engages in cross-border business activities, operating in multiple countries outside of its home country, and dealing with international production or trade.