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A Company Makes a Single Product That It Sells for $16

Question 112

Multiple Choice

A company makes a single product that it sells for $16 per unit. Fixed costs are $76,800 per month and the product has a contribution margin ratio of 40%. If the company's actual sales are $224,000, its margin of safety is:


A) $32,000
B) $96,000
C) $128,000
D) $192,000

Correct Answer:

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