Question

​Hyde's Headphones sells deluxe headphones for $ 80 each. Unit variable expenses total $ 45. The breakeven sales in units is 2 comma 900 and budgeted sales in units is 4 comma 329. What is the margin of safety in​ dollars?a. $1,544B. $19.30C. $123,520D. $555,520

Answer 1

$114,320

Step-by-step explanation:

The computation is shown below:

The margin of safety equals to

= (Expected sales units - break even sales units) × Selling price per unit

where,

expected sales units = 4,329 units

Break even sales units = 2,900 units

And, the selling price per units is $80 each

So, the margin of safety in dollars is

= (4,329 units - 2,900 units) × $80

= 1,429 units × $80

= $114,320

This is the answer but the same is not provided in the given options