Reference: 08-06
Arthur Company Had the Following Data for the Year

Reference: 08-06
Arthur Company had the following data for the year just ended: $$\begin{array} { | l | l | } \hline \text { Sales } & 4,000 \text { units } \\\hline \text { Sales price } & \$ 60 \text { per unit } \\\hline \text { Variable cost } & \$ 18 \text { per unit } \\\hline \text { Fixed costs } & \$ 42,000 \\\hline\end{array}$$
-If the company wants its margin of safety to equal $35,000 next year, all other factors remaining the same, how many units will it need to sell (round your final answer to the nearest whole number)

A) 1,833.
B) 833.
C) 1,000.
D) 1,583.

Correct Answer:

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