Awanita Enterprises Sells Computer Flash Drives for $3

question 249

Multiple Choice

Awanita Enterprises sells computer flash drives for $3.16 per unit.Unit variable cost is $0.06.The breakeven point in units is 3600,and expected sales in units are 4300.What is the margin of safety in dollars?

• A) $2170
• B) $2212
• C) $42
• D) $11,376

---

Definitions:

Statement of Owner's Equity

A financial statement that outlines the changes in the equity of a company over a specific period, including contributions, withdrawals, and the net income or loss.

Worksheet

An accounting tool used for planning and preparing financial statements, allowing accountants to adjust and update figures through a series of adjustments.

Depreciation Expense

the systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, resulting in net profit or loss.