Worbel Company Has Variable Costs of $5 Per Unit and a Selling

question 126

Multiple Choice

Worbel Company has variable costs of $5 per unit and a selling price of $10 per unit.Fixed costs are $100,000.Planned unit sales for 2015 are 25,000 units.Actual unit sales for 2014 were 22,000.What is the margin of safety in dollars for 2015?

• A) $5,000
• B) $20,000
• C) $30,000
• D) $50,000

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