Brooklyn Sells a Single Product to Wholesalers

question 11

Multiple Choice

Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. Brooklyn's safety margin in units is:

• A) (13,400).
• B) 0.
• C) 1,600.
• D) 13,600.
• E) None of the other answers is correct.

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Definitions:

Supply Chain Performance

An assessment of how effectively and efficiently a supply chain operates, often evaluated with metrics like delivery times, costs, and product quality.

Supply Chain Cost

All expenses incurred in the production, handling, and distribution of a product or service, from raw materials to delivery to the end user.

Responsiveness

The ability of a company, organization, or system to quickly and effectively react to changes, inquiries, or demands.

Total Demand

The entire quantity of a product or service that consumers in a market are willing and able to buy over a specified time period, given all other factors being constant.