1. The current sales are $350,000 and break-even units are 10,000 at a price of $25 per unit. What is the margin of safety?
A. $ 25,000
B. $50,000
C. $100,000
D. $250,000
2. A company wants to earn $60,000 on Product B. Its fixed costs are $40,000 and variable costs are $10 per unit. Product B sells for $20 per unit. The number of units of Product B that must be produced to reach the company's desired profit is:
A. 6,000 units.
B. 4,000 units.
C. 12,000 units.
D. 10,000 units