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

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Definitions:

Community Manager

A professional responsible for building, growing, and managing an organization's or brand's online community to foster a positive relationship between the brand and its audience.

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Monitoring and analyzing conversations and trends on social media and the internet to gather insights.

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Communication from a business to its customers, tailored to meet their needs and inquiries.