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

question 132

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.

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Definitions:

Sample Points

Sample points are individual elements or outcomes within a sample space, representing all possible outcomes of a statistical experiment.

Department Store

A large store selling a wide variety of goods divided into departments.

Sample Points

Individual elements or cases chosen from a population for the purpose of statistical analysis.

CDs

Compact Discs, a digital optical disc data storage format used for storing digital data.