Margin of safety for the company


The following monthly data are available for Tugg, Inc. which produces only one product: Selling price per unit, $42; Unit variable expenses, $14; Total fixed expenses, $70,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June?

A) $42,000.

B) $63,000.

C) $37,800.

D) $1,500.

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Accounting Basics: Margin of safety for the company
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