Columbus Industries Makes a Product That Sells for $25 a Unit.The

question 5

Multiple Choice

Columbus Industries makes a product that sells for $25 a unit.The product has a $5 per unit variable cost and total fixed costs of $9,000.At budgeted sales of 2,000 units,the margin of safety ratio is:

• A) 22.5%.
• B) 10%.
• C) 77.5%.
• D) None of these answers is correct.

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Definitions:

Negative Factors

Elements or conditions that can cause harm, hinder progress, or create adverse effects in a given situation or environment.

Jobs

Engagements or roles within organizations or as freelancers that individuals perform in exchange for compensation.

Asset-Based

An approach or strategy that focuses on utilizing a company's tangible and intangible assets to secure financing or drive performance.

Operating Assets

Assets that are used for the day-to-day functioning of a business, contributing directly to its earnings.