Use the Following Information to Answer the Following Questions

question 39

Multiple Choice

Use the following information to answer the following Questions
Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units.
-If Narchie sells 24,000 units, its safety margin will be:

• A) $200,000.
• B) $400,000.
• C) $1,000,000.
• D) $1,200,000.
• E) None of the answers is correct.

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Definitions:

Promised Yield

The return a bond issuer commits to pay to bondholders, usually expressed as an annual percentage.

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, indicating the percentage change in price for a one percent change in yield.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date.

Semiannually

A term indicating that an event or action occurs twice a year.