Use the Following Information for the Next 5 Questions

question 79

Multiple Choice

Use the following information for the next 5 questions.
SXF 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 SXF 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:

Production Delays

Delays in the manufacturing or assembly process, which can lead to a slower time to market for products and potentially lost sales.

Problem-solving

The process of identifying a problem, finding possible solutions, and taking the appropriate steps to resolve the issue.

Cross-functional

Involving individuals from different departments or areas of expertise working together towards a common goal.

Self-managed

Referring to individuals or teams that operate independently, making decisions and managing their tasks and responsibilities without direct supervision.