Arthur Company Had the Following Data for the Year Just

question 2

Multiple Choice

Arthur Company had the following data for the year just ended:
$\begin{array}{|l|r|}\hline \text { Sales } & 4,000 \text { units } \\\hline \text { Sales price } & \$ 60 \text { per unit } \\\hline \text { Variable cost } & \$ 18 \text { per unit } \\\hline \text { Fixed costs } & \$ 42,000 \\\hline\end{array}$


-If the company wants its margin of safety to equal $35,000 next year,all other factors remaining the same,how many units will it need to sell?

• A) 1,000 units.
• B) 833 units.
• C) 1,583 units.
• D) 1,833 units.

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Definitions:

Pleasure Principle

The driving force of the id that seeks immediate gratification of all desires, wants, and needs.

Forbidden Impulse

Refers to an unconscious desire or thought that is deemed unacceptable or taboo by societal standards, often suppressed or repressed.

Anxiety

An emotion of apprehension, concern, or discomfort, often regarding an upcoming event or an unpredictable result.

Impulse Gratification

The act of satisfying an immediate desire or urge, often without consideration of the long-term consequences.