Question
Redstone Company has gathered the following total cost info for the year ended December 31, 2012. There were no beginning or ending inventories. The company
Redstone Company has gathered the following total cost info for the year ended December 31, 2012. There were no beginning or ending inventories. The company produced and sold 10,000 units.
Sales Revenue : $70,000
Direct Materials : $9,000
Direct Labor : $7,000
Variable Manufacturing Overhead : $2,000
Fixed Manufacturing Overhead : $10,000
Variable Selling and Adminstrative Expense : $6,000
Fixed Selling and Adminstrative Expense : $10,000
Question : The company's margin of safety (in dollars) for 2012 is closest to
A) $39,565
B) $70,000
C) $56,538
D) $43,077
E) None
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Financial Accounting: A Business Process Approach
Authors: Jane L. Reimers
3rd edition
978-013611539, 136115276, 013611539X, 978-0136115274
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