The Smith Corporation Has the Following Data for Current Year

question 105

Multiple Choice

The Smith Corporation has the following data for current year: $$\begin{array} { l l } \text { Selling price per unit } & \$ 15 \\\text { Variable cost per unit } & \$ 9 \\\text { Fixed costs } & \$ 45,000 \\\text { Units sold } & 10,000 \text { units }\end{array}$$
- What will the margin of safety in units be (rounded to the nearest whole unit) ?

• A)667
• B)2,500
• C)4,000
• D)7,500

---

Definitions:

Desire Affiliation

An individual's need or longing for social connections and relationships with others, driving them towards group involvement or social interaction.

Uncertain

Characterized by doubt or lacking definite plans, outcomes, or clarity; undecided.

Embarrassed

Feeling self-conscious, ashamed, or uncomfortable due to a socially awkward situation.

Exchange Theory

A social psychological and sociological perspective that explains social change and stability as a process of negotiated exchanges between parties.