Majid Corporation sells a product for $145 per unit. The product's current sales are 41,300 units and its break-even sales are 32,625 units.What is the margin of safety in dollars?Multiple Choice$3,736,965$5,988,500$4,730,625$1,257,875

Margin of safety measures the excess of the current sales to the break-even sales. It is calculated…

Answered: Majid Corporation sells a product for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Majid Corporation sells a product for $145 per unit. The product's current sales are 41,300 units and its break-even sales are 32,625 units. What is the margin of safety in dollars? Multiple Choice $3,736,965 $5,988,500 $4,730,625 $1,257,875