Produced to reach the companys desired profit

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Reference no: EM131292067

1. The current sales are $350,000 and break-even units are 10,000 at a price of $25 per unit. What is the margin of safety?

A. $ 25,000

B. $50,000

C. $100,000

D. $250,000

2. A company wants to earn $60,000 on Product B. Its fixed costs are $40,000 and variable costs are $10 per unit. Product B sells for $20 per unit. The number of units of Product B that must be produced to reach the company's desired profit is:

A. 6,000 units.

B. 4,000 units.

C. 12,000 units.

D. 10,000 units

Reference no: EM131292067

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