The Following Monthly Data Are Available for the Eager Company

question 8

Multiple Choice

The following monthly data are available for the Eager Company and its only product: $$\begin{array} { | l | l | } \hline \text { Unit sales price } & \$ 75 \\\hline \text { Unit variable expenses } & \$ 30 \\\hline \text { Total fixed expenses } & \$ 180,000 \\\hline \text { Actual sales for the month of March } & 7,000 \text { units } \\\hline\end{array}$$ The margin of safety for the company for March was:

• A)$225,000.
• B)$315,000.
• C)$495,000.
• D)$135,000.

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Definitions:

Price Discrimination

The strategy of selling the same product at different prices to different segments of consumers.

Sherman Act

A landmark federal statute passed in the United States to outlaw monopolistic business practices.

Monopolies Illegal

A legal stance or policy where monopolies are prohibited due to their potential to limit competition, raise prices, and reduce choices for consumers.

Supreme Court

The highest judicial court in a country or state, responsible for interpreting the constitution and laws and applying their interpretations to major legal cases.