What Will Be the Monthly Margin of Safety (In Dollars)

question 9

Multiple Choice

What will be the monthly margin of safety (in dollars) if 3,000 units are sold each month?

• A) $16,667.
• B) $100,000.
• C) $12,000.
• D) $150,000.

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Definitions:

Sum

The total obtained by adding together a set of numbers or quantities.

Restriction

A limitation or condition that confines or restricts something's scope or action.

Quantity

The amount or number of a material or item required or available, often used in inventory management and production planning.

Constraint

A limitation or restriction in a process or system that can impact performance or outcomes.