Question

In: Accounting

The manager at​ Tom's Taxidermy expects to sell 900 units at​ $80 each unit. In order...

The manager at​ Tom's Taxidermy expects to sell 900 units at​ $80 each unit. In order for the manager to​ breakeven, the manager must sell 100 units. What is the margin of safety in​ dollars?

$72,000

$79,000

$80,000

$64,000

Solutions

Expert Solution

Correct answer-------------$64,000

Working

Actual Units sales 900
Break-even Units 100
Margin of safety in units 800
Margin of safety in Dollars (800 x $80) $      64,000.00

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