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Use the Following Information to Answer the Following Questions

Question 39

Multiple Choice

Use the following information to answer the following Questions
Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units.
-If Narchie sells 24,000 units, its safety margin will be:


A) $200,000.
B) $400,000.
C) $1,000,000.
D) $1,200,000.
E) None of the answers is correct.

Correct Answer:

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