BETA Sells Its Single Product for $14 Per Unit, and Its

question 121

Multiple Choice

BETA sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows:
If BETA increases its sales volume by 10%, what will happen to its margin of safety?

• A) It will decrease
• B) It will increase
• C) It will stay the same
• D) Cannot be determined

---

Definitions:

Aniline

An aromatic amine with the formula C6H5NH2, used as a precursor in the synthesis of dyes, drugs, and plastics.

Acid Catalysis

The acceleration of a chemical reaction by an acid, which functions by donating protons (H+ ions) to transitional states or reactant molecules.

Organic Product

A compound derived from living organisms or synthetic processes designed to mimic naturally occurring compounds, often involved in various chemical reactions.

NMR Peaks

The visible peaks in a nuclear magnetic resonance spectrum, each corresponding to a different chemical environment of nuclei in a molecule.