Bertrand Enterprises Sells Computer Disks for $1

question 117

Multiple Choice

Bertrand Enterprises sells computer disks for $1.70 per disk.Unit variable expenses total $0.80.The breakeven point in units is 4,000 and expected sales in units are 4,500.What is the margin of safety in dollars?

• A) $6,800
• B) $850
• C) $3,600
• D) $7,650

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Definitions:

Partnership Business

An officially recognized form of enterprise undertaken by two or more participants, who equally manage the business and its profits.

Agent

A person authorized to act on behalf of another, often in business transactions.

Employee

An individual who provides labor or services to another person or business in exchange for compensation under agreed terms.

Vicariously Liable

A legal principle where one party is held responsible for the actions or omissions of another party, often used in employer-employee relations.