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A product has a break-even point of 40,000 units and a margin of safety of 20%. The contribution per unit is 3.
What is the budgeted profit?
Suggested Answer: B
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37 comments · newest first
AD
Adell
11 months ago
Contribution per unit is 3, so profit = 24k.
TH
Thea
11 months ago
Totally agree, 24k makes sense!
EV
Evette
11 months ago
Wait, are we sure about that profit calculation?
CH
Christiane
12 months ago
Profit should be 24,000 based on those numbers!
AN
Anthony
12 months ago
Break-even at 40k units, margin of safety 20%.
DA
Dana
1 year ago
If the break-even is 40,000 units and we have a margin of safety, doesn't that mean we need to find the total sales first?
EL
Elbert
1 year ago
I'm a bit unsure about how to calculate the budgeted profit from the break-even point and margin of safety.
DA
Daron
1 year ago
I remember practicing a similar question where we had to calculate profit using contribution per unit. I hope I can apply that here.
AM
Amos
1 year ago
I think the margin of safety is 20% of the break-even point, so that might help us find the actual sales units.
EL
Eleni
1 year ago
Wait, what's the contribution per unit again? I need to make sure I have all the necessary information before I start calculating.
TH
Thurman
1 year ago
This looks straightforward. I just need to plug the numbers into the right formula and solve for the budgeted profit. I've got this!
JE
Jenelle
1 year ago
Hmm, I'm a bit confused. How do I use the margin of safety to find the budgeted profit? I'll need to review my notes on this type of problem.
AN
Antonio
1 year ago
Okay, I think I can handle this. The key is to use the given information about the break-even point and margin of safety to calculate the budgeted profit.
DO
Donette
1 year ago
I'm pretty confident the answer is B - a test design tool to create the test cases efficiently. That seems like the most relevant for the E2E phase.
CA
Caprice
1 year ago
Hmm, this seems like a tricky one. I'll need to think carefully about where Splunk would log information related to bad event breaking.
GR
Gregoria
1 year ago
I'm not really sure about C, but I remember we discussed how some theories assume too much about human behavior and can oversimplify things.
MA
Margarett
1 year ago
This question is a real head-scratcher. Maybe I should just flip a coin and hope for the best. Or maybe I'll just ask the instructor to give me the answer - they're probably tired of watching us struggle with these tricky accounting problems anyway.
DE
Desmond
1 year ago
I'm pretty sure it's A) 8,000.
AL
Alishia
1 year ago
No, I believe it's C) 30,000.
EV
Eva
1 year ago
I think the answer is B) 24,000.
DE
Destiny
2 years ago
Option D, 40,000? Really? That seems way too high. I think I'll go with C, 30,000. It just makes more sense to me.
ED
Edelmira
1 year ago
Well, let's see if the correct answer is C or D.
LE
Leonida
1 year ago
I'm not so sure, I think it might actually be D, 40,000.
DO
Dona
1 year ago
I agree, C does seem like a more reasonable choice.
JA
Jamal
1 year ago
I think I'll go with C, 30,000. It just makes more sense to me.
SH
Shay
2 years ago
Aha! I've got it. The correct answer is C, 30,000. I just need to do the math: 40,000 units - (40,000 * 0.2) = 32,000 units, and 32,000 * 3 = 96,000, so the budgeted profit is 96,000 - 66,000 = 30,000.
ME
Merrilee
2 years ago
I'm not too sure about this one. The break-even point is 40,000 units, but the question is asking for the budgeted profit. I'm going to have to think this through a bit more.
EN
Enola
1 year ago
B) 24,000
AL
Alpha
1 year ago
A) 8,000
QU
Quiana
2 years ago
Hmm, I'm going to go with option B. 24,000 seems like the right answer since the margin of safety is 20% and the contribution per unit is 3.
NA
Nada
1 year ago
I believe the budgeted profit is 24,000.
MA
Mariann
1 year ago
I agree, the contribution per unit is 3.
AL
Alyce
1 year ago
The margin of safety is 20%.
JA
Jacqueline
2 years ago
I think the break-even point is 40,000 units.
DO
Dominic
2 years ago
I'm not sure. Can someone explain how the margin of safety affects the budgeted profit?
LE
Lennie
2 years ago
I agree with Vonda. The margin of safety is 20%, so the budgeted profit should be 20% of the break-even point.
VO
Vonda
2 years ago
I think the answer is B) 24,000.