Morganti Corporation Sells a Product for $140 Per Unit

question 9

Multiple Choice

Morganti Corporation sells a product for $140 per unit. The product's current sales are 40,700 units and its break-even sales are 31,339 units. What is the margin of safety in dollars?

• A)$3,798,667
• B)$5,698,000
• C)$4,387,460
• D)$1,310,540

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Definitions:

Average Rate Of Return

The mean annual growth rate of an investment over a specified period of time, expressed as a percentage.

Excess Funds

Resources or capital that exceed the immediate operational or investment needs of an entity.

Rate Of Interest

The slice of a loan attracting interest fees for the borrower, typically outlined as an annual percentage of the still owing loan amount.

One-tailed Hypothesis

A statistical hypothesis test where the region of rejection is on only one side of the sampling distribution.