Fruit Computer Corporation makes custom fruit shaped computers. It is currently producing 60 computers per month. Data are as follows: Sales price per unit $800 Variable cost per unit 600 Fixed costs per month 5600 If Fruit Computer Corporation expects to sell 50 units per month, how much is its margin of safety expressed in sales revenue? O $22,400 O $13,200 O $17,600 O $40,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
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Fruit Computer Corporation makes custom fruit shaped
computers. It is currently producing 60 computers per
month. Data are as follows:
Sales price per unit
$800
Variable cost per unit
600
Fixed costs per month
5600
If Fruit Computer Corporation expects to sell 50 units
per month, how much is its margin of safety expressed
in sales revenue?
O $22,400
O $13,200
O $17,600
O $40,000
Transcribed Image Text:Fruit Computer Corporation makes custom fruit shaped computers. It is currently producing 60 computers per month. Data are as follows: Sales price per unit $800 Variable cost per unit 600 Fixed costs per month 5600 If Fruit Computer Corporation expects to sell 50 units per month, how much is its margin of safety expressed in sales revenue? O $22,400 O $13,200 O $17,600 O $40,000
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