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Answer the Following Questions Using the Information Below

Question 115

Multiple Choice

Answer the following questions using the information below:
Dr Charles Hunter,MD,performs a certain outpatient procedure for $1000.His fixed costs are $20 000,while his variable costs are $500 per procedure.Dr Hunter currently plans to perform 200 procedures this month.
-What is the margin of safety assuming 100 procedures are budgeted?


A) $100 000 or 100 times
B) $40 000 or 40 times
C) $60 000 or 60 times
D) $50 000 or 50 times

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