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

---

Definitions:

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives) that can be bought or sold.

Pre-Filing Period

The time frame before the official submission of a document or application, often involving preparation or preliminary steps.

Solicitation

The act of requesting or seeking to obtain something, often used in legal contexts to refer to the act of seeking to procure business, services, or responses.

Rule 505

Rule 505 was a regulation under Regulation D of the SEC that allowed companies to offer and sell securities to accredited investors without public registration, subject to certain conditions. It has been superseded by updates to the regulations.