Mastering Margin of Safety
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Questions and Answers

41.C. What was the margin of safety for Bill Inc at the end of 2021?

  • $252,000
  • $225,000
  • No right answer
  • $215,000 (correct)
  • 41.D. How many surfboards would Bill Inc need to sell in order to achieve an after-tax net profit of $67,200 in 2022, while keeping the contribution margin and fixed costs unchanged?

  • 5,460 Surfboards (correct)
  • 5,700 Surfboards
  • 5,640 Surfboards
  • No right answer
  • 41.E. What is the recommendation for Bill Inc's after-tax net profit in 2022, while keeping the contribution margin and fixed costs unchanged?

  • $64,200
  • No right answer
  • $67,200 (correct)
  • $70,200
  • Which one of these is the most correct?

    <p>C) $252,000</p> Signup and view all the answers

    How many surfboards would Bill Inc need to sell in order to achieve an after-tax net profit of $67,200 in 2022, while keeping the contribution margin and fixed costs unchanged?

    <p>B) 5,640 Surfboards</p> Signup and view all the answers

    What was the recommendation for Bill Inc's after-tax net profit in 2022, while keeping the contribution margin and fixed costs unchanged?

    <p>A) $67,200</p> Signup and view all the answers

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