In: Accounting
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
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 |