During the Current Year, OutlyTech Corp

question 31

Multiple Choice

During the current year, OutlyTech Corp. expected to sell 24,000 telephone switches. Fixed costs for the year were expected to be $12,144,000, the unit sales price was budgeted at $3,200, and unit variable costs were budgeted at $1,440.
OutlyTech's margin of safety (MOS) in units is (rounded up to nearest whole number) :

• A) 18,270.
• B) 17,100.
• C) 20,880.
• D) 16,970.
• E) 22,190.

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Definitions:

Modus Tollens

A logical argument form where if the consequent is not true, then the antecedent cannot be true; often formatted as "If P, then Q. Not Q, therefore not P."

Deductive Reasoning

A rational procedure where an outcome is derived from the agreement of several statements, which are widely accepted as true.

Deductive Validity

A property of some logical arguments such that it is impossible for the premises to be true and for the conclusion(s) to be false.

Previous Beliefs

Pre-existing opinions or convictions held before being exposed to new information or experiences.