Awanita Enterprises sells computer flash drives for $3.16 per unit. Unit variable cost is $0.06. The breakeven point in units is 3600, and expected sales in units are 4300. What is the margin of safety in dollars?

A) $2170
B) $2212
C) $42
D) $11,376


B) $2212
Margin of safety = (4300 - 3600) × $3.16 = $2212

Business

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