In the Current Year, Becker Sofa Company Expected to Sell

question 96

Multiple Choice

In the current year, Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200.
Becker Sofa Company's margin of safety (MOS) in sales dollars is:

• A) $36,200,000.
• B) $42,600,000.
• C) $33,300,000.
• D) $46,700,000.
• E) $39,100,000.

Understand the concept of social identity in the context of social media.

Identify different types of market segmentation and their applications.

Recognize the role of geographic and demographic segmentation in marketing.

Distinguish between behavioral segmentation and other segmentation types.

---

Definitions:

Monetary Outlay

The amount of money spent on a particular transaction or investment.

Implicit Costs

The opportunity costs that arise when a company uses internal resources without a direct payment.

Explicit Costs

Direct payment made to others in the course of running a business, such as wages, rent, and materials.

Accounting Profits

The net income of a company determined by subtracting total expenses from total revenues, according to generally accepted accounting principles.