Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units. If Narchie sells 24,000 units, its safety margin will be:
A. $200,000.
B. $1,000,000.
C. $1,200,000.
D. $400,000.
E. None of the answers is correct.
Answer: A
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