Gould Enterprises Sells Computer Disks for $1

question 167

Multiple Choice

Gould Enterprises sells computer disks for $1.50 per disk. Unit variable expenses total $0.90. The breakeven point in units is 3,000 and expected sales in units are 4,300. What is the margin of safety in dollars?

• A)$4,500
• B)$1,950
• C)$3,870
• D)$6,450

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Definitions:

Expensive

Characterized by high cost or value; often referring to goods, services, or processes requiring significant financial investment.

Liquid Crystal Display (LCD)

The technology used in flat-panel computer monitors.

Monitors

Output devices displaying information visually, such as computer screens.

Laptops

Portable computers that are small enough to be used on one's lap, typically having a screen, keyboard, and battery in a single unit.