Use the Following Information to Determine the Margin of Safety

question 169

Multiple Choice

Use the following information to determine the margin of safety in dollars: $\begin{array}{ll}\text { Unit sales } & 50,000 \text { units } \\\text { Dollar sales } & \$ 500,000 \\\text { Fixed costs } & \$ 204,000 \\\text { Variable costs } & \$ 187,500\end{array}$

• A)$88,500
• B)$108,500
• C)$173,600
• D)$326,400
• E)$500,000

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Definitions:

Business-to-Business

Transactions or interactions that occur between businesses, as opposed to those between a business and an individual consumer.

Buying Situations

Various scenarios or contexts in which a purchase is made, which can influence the decision-making process and marketing strategies.

Modified Rebuy

A buying situation in which an organization makes some changes to an existing purchase agreement, perhaps adjusting quantities, delivery schedules, or product specifications.

Evoked Set

A group of relevant brands or products that a consumer recalls from memory when making a purchasing decision.