What is the margin of safety in sales dollars


Question:

Assume a sales volume of 6,000 units, unit selling price of $20, unit variable cost of $12, and total fixed costs of $20,000. What is the margin of safety in sales dollars?

A. $25,000
B. $50,000
C. $70,000
D. $120,000

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Accounting Basics: What is the margin of safety in sales dollars
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