Reference: 08-06
Arthur Company Had the Following Data for the Year

question 44

Multiple Choice

Reference: 08-06
Arthur Company had the following data for the year just ended: $$\begin{array} { | l | l | } \hline \text { Sales } & 4,000 \text { units } \\\hline \text { Sales price } & \$ 60 \text { per unit } \\\hline \text { Variable cost } & \$ 18 \text { per unit } \\\hline \text { Fixed costs } & \$ 42,000 \\\hline\end{array}$$
-If the company wants its margin of safety to equal $35,000 next year, all other factors remaining the same, how many units will it need to sell (round your final answer to the nearest whole number)

• A)1,833.
• B)833.
• C)1,000.
• D)1,583.

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Definitions:

Neural Tube

A structure in the early stage of brain and spinal cord development in embryos.

Neurons

Specialized cells that transmit nerve impulses; they are the fundamental units of the brain and nervous system.

Cephalocaudal Development

A pattern of growth where development proceeds from the head downwards towards the rest of the body.

Miscarriage

The spontaneous loss of pregnancy before the fetus can survive outside the womb, typically occurring within the first 20 weeks of gestation.