Gould Enterprises Sells Computer Disks for $3

question 48

Multiple Choice

Gould Enterprises sells computer disks for $3.16 per disk.Unit variable cost is $0.06.The breakeven point in units is 3,600,and expected sales in units are 4,300.What is the margin of safety in dollars?

• A)$2,170
• B)$2,212
• C)$42
• D)$11,376

Demonstrate knowledge of the application of psychology to real-world problems.

Recognize the significance of levels of analysis in understanding behavior and mental processes.

Understand how knowledge is acquired through observation and empirical evidence.

Comprehend the relationship between mind and body.

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Definitions:

Goodwill

An intangible asset that arises when a company is purchased for more than the value of its net tangible assets, often related to reputation or brand.

Fair Value

An estimate of the market value of an asset or liability, based on current prices in an orderly transaction between market participants at the measurement date.

Pre-Acquisition Subsidiary Revenues

Revenues generated by a subsidiary prior to being acquired by a parent company.