Question: During the current year, OutlyTech Corp. expected to sell 12 000 telephone switches. Fixed costs for the year were expected to be R6 000 000,

During the current year, OutlyTech Corp. expected to sell 12 000 telephone switches. Fixed costs for the year were expected to be R6 000 000, the unit sales price was budgeted at R2 500, and unit variable costs were budgeted at R1 890. OutlyTech's margin of safety (MOS) in sales Rands is:

A.

R7 320 000

B.

R24 000 000

C.

R36 000 000

D.

R5 409 836

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