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:

Breach Of Warranty

A violation of a guarantee made by a seller to a buyer regarding the condition or quality of a product or service.

Allergen Filtration System

A system designed to remove allergens from the air to minimize allergic reactions for individuals in an environment.

Good Faith

Acting with honest intentions without taking unfair advantage over another party, especially in contracts and negotiations.

UCC

The Uniform Commercial Code, a set of laws that regulate sales and commercial transactions in the United States.