Question: Honolulu, Inc. sells its product for $800 per unit. Variable costs are $470 per unit, and fixed costs are $8,580 per month. If the firm

Honolulu, Inc. sells its product for $800 per unit. Variable costs are $470 per unit, and fixed costs are $8,580 per month. If the firm expects to sell 40 units next month, what is its margin of safety in units?

A.

14 units

B.

66 units

C.

40 units

D.

12 units

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