What is a relevant cost, Winners Games reported sales of

What is a relevant cost

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Reference no: EM13813385

1. Winners Games reported sales of $72,000 and net income totaling $12,000 during the year. It’s selling price is $6 per unit, its variable cost is $2 per unit, and its total fixed costs are $36,000. How much is the projected margin of safety?

a. $54,000

b. $66,000

c. $12,000

d. $18,000

2. What is a relevant cost?

a. It is a sunk cost.

b. It is a past cost.

c. It is a cost that differ across alternatives.

d. It is an opportunity cost.

3. True or False

1. A sunk cost is the potential benefit that may be obtained by following an alternative course of action.

Reference no: EM13813385

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