In the Current Year, Becker Sofa Company Expected to Sell

question 4

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 ratio (MOS %) is (rounded to two decimal places) :

• A) 71.29%.
• B) 77.98%.
• C) 70.83%.
• D) 79.27%.
• E) 73.35%.