Gould Enterprises Sells Computer Disks for $1

question 120

Multiple Choice

Gould Enterprises sells computer disks for $1.50 per disk. Unit variable expenses total $0.90. The breakeven point in units is 3 000 and budgeted sales in units are 4 300. What is the margin of safety in dollars?

• A)$4 500
• B)$1 950
• C)$780
• D)$2 580

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Definitions:

Legal Duty

An obligation arising from law that requires an individual or entity to conform to a standard of conduct.

Prudent Person

An individual who exercises caution and good judgment when making decisions, often used as a standard for legal and financial decisions.

Misstatement

An error or inaccuracy in financial information or statements, which can be intentional (fraud) or unintentional.

Rebuttable Presumption

A legal presumption that can be overturned or challenged with evidence to the contrary, typically affecting the burden of proof in legal proceedings.