A Company Makes a Single Product That It Sells for $16

question 112

Multiple Choice

A company makes a single product that it sells for $16 per unit. Fixed costs are $76,800 per month and the product has a contribution margin ratio of 40%. If the company's actual sales are $224,000, its margin of safety is:

• A) $32,000
• B) $96,000
• C) $128,000
• D) $192,000

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Definitions:

Backchannel

A discussion on social media that occurs simultaneously with the speaker's presentation, happening in real-time as the event unfolds.

Parallel Communication

A method of communication where messages are sent simultaneously across different channels or mediums.

Webcasts

Presentations delivered over the internet that can be watched in real-time or downloaded for future viewing.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting a concern about future events.