Question 1 Question 1 of 10 2 points The following monthly data are available for Lumberyard...

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Answer 1

Answer #1

Total sales = 3000 x 42 = 126000

Contribution margin = 42 - 14 = 28

Break even point = Fixed costs / (Sales - VC)

= 42000 / 28

= 1500 units

Sales revenue at 1500 units = 1500 x 42 = 63000

Margin of safety

= Sales - Breakeven sales

= 126000 - 63000

= 63000

Option B is correct

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Answer 2

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