Globus Autos sells a single product. 8,000 units were sold ...

[ishan]

Question 1

Globus Autos sells a single product. 8,000 units were sold resulting in $83,000 of sales revenue, $21,000 of variable costs, and $20,000 of fixed costs. If variable costs decrease by $1.00 per unit, the new margin of safety is ________. (Round intermediate calculations to the nearest cent.)
◦ $83,000
◦ $21,000
◦ $59,190
◦ $63,000

Question 2

Globus Autos sells a single product. 8,000 units were sold resulting in $83,000 of sales revenue, $21,000 of variable costs, and $10,000 of fixed costs. If Globus reduces the selling price by $1.20 per unit, the new margin of safety is:
◦ 6,911 units
◦ 3,042 units
◦ 4,958 units
◦ 8,000 units

[tmlewis4706]

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[Andrew Chapman]

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