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

question 102

Multiple Choice

Wetzel Company has variable costs of $5 per unit and a selling price of $10 per unit.Fixed costs are $200,000.Planned unit sales for 2015 are 45,000 units.Actual unit sales for 2014 were 42,000.What is the margin of safety in units for 2015?

• A) 2,000 units
• B) 3,000 units
• C) 5,000 units
• D) 7,000 units

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Definitions:

Industrial Training

Educational and training programs focused on developing the skills and knowledge necessary for employment in industries and manufacturing.

Curriculum

The subjects comprising a course of study in a school or college.

Hampton Institute

Now known as Hampton University, it is a historically Black university located in Hampton, Virginia, established in 1868 to educate freed slaves.

Jack Johnson

The first African-American world heavyweight boxing champion, holding the title from 1908 to 1915, known for breaking color barriers in the sport.