Question: 1- If the variable cost per unit $20, the price is $25, the total fixed cost is $40,000, and the target profit is $ 20,000,

1-If the variable cost per unit $20, the price is $25, the total fixed cost is $40,000, and the target profit is $ 20,000, then the volume of production and sales that achieves the target profit is

A) 12,000 units B) 4,000 units C) 8,000 units D) None of the other answers

2-If the variable cost per unit $20, the price is $25, the total fixed cost is $40,000, and the expected sales is 20,000 units, then the safety margin ratio is

A) 12,000 units B) 8,000 units C) 60% D) None of the other answers

Please choose the correct answers !

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