The manager at tom's taxidermy expects to sell 1,000 units at $70 each unit. in order for the manager to breakeven, the manager must sell100 units.
what is the margin of safety in dollars?
a.$63,000
b.$75,900
c.$70,000
d.$ 77,000

A.$63,000

Explanation:

The margin of safety is defined as the difference between the actual sales volume and the breakeven volume.

In this case, Tom's Taxidermy expects to sell 1,000 units at $70 each and their breakeven volume is 100 units, the margin of sales, in dollars, is:

The answer is A.$63,000.

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