9.

Unistar Computers makes and sells a unique computer that is designed for a specific market. Cost information relating to that product is shown below:

Sales Price	$	1,500 per unit
Variable Costs	$	1,000 per unit
Fixed Costs	$	120,000 total

Unistar expects to make and sell 300 computers. Based on this information, the margin of safety expressed in units is:

60 units.

240 units.

300 units.

120 units.

7. 1.25 points The margin of safety is a measure of the distance between budgeted sales and the break-even point. It can be measured in dollars, in units or as a percentage. O Statement one is true and statement two is false. O These statements are false. These statements are true. O Statement one is false and statement two is true. References eBook & Resources Learning Objective: O3-04 Calculate and Multiple Choice interpret the margin of safety measure. 8. 1.50 points With respect to a company that is currently earning a profit, O the lower the margin of safety the less likely a company is to incur a loss O None of the choices is correct. O he higher the margin of safety the more likely a company is to incur a loss. O the higher the margin of safety the less likely a company is to incur a loss. Required information Required information