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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