Creative Cravat Neckties Sell for $75 Each

question 95

Multiple Choice

Creative Cravat neckties sell for $75 each. Unit variable expenses total $50. The break-even sales in units is 4,000 and budgeted sales in units is 9,600. What is the margin of safety in dollars?

• A) $280,000
• B) $420,000
• C) $300,000
• D) $100,000

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Definitions:

Spanish Inquisition

An institution established by the Catholic Monarchs of Spain in 1478 to maintain Catholic orthodoxy within their kingdoms and used for the persecution of heretics and other religious minorities.

Dutch Revolt

The 16th-century rebellion in the Netherlands against the Spanish Empire, leading to the independence of the Dutch Republic.

Economic Reasons

The motivations or factors related to financial gains, economic stability, or the pursuit of wealth that influence decisions or policies.

Religious Reasons

Motivations or justifications for actions, policies, or beliefs based on religious faith, doctrines, or interpretations.