Question
# 32 A firm has the following information available for two products: A B Sales $120,000 $130,000 Variable CGS $ 30,000 $50,000 Fixed CGS $
# 32
A firm has the following information available for two products:
A B
Sales $120,000 $130,000
Variable CGS $ 30,000 $50,000
Fixed CGS $ 25,000 $20,000
Gross Margin $65,000 $ 60,000
Variable SG&A $15,000 $20,000
Fixed SG&A $20,000 $10,000
Net income $30,000 $30,000
What is the margin of safety for the product with the greater likelihood to incur loss?
Product A : $75,000
Product B: $65,000
Product A: $48,000
Product B $60,000
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
16th Edition
324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140
