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Assume that Bene Petit sells only family - sized meals and that the average price is $ 5 . 0 0 per serving. Variable manufacturing

Assume that Bene Petit sells only family-sized meals and that the average price is
$5.00 per serving. Variable manufacturing costs are $1.75 per serving for customer
meals and $0.75 per serving for donated meals. Variable delivery expenses are $2.00
per customer delivery (with an average order size of four meals or 16 servings in each
delivery). Variable delivery expenses for donated meals are $200 per delivery, with an
average of 1,000 donated meals or 4,000 servings in each delivery. Other variable
selling expenses are $0.30 per customer meal sold. Total fixed costs are $144,000.
If Taylor expects to sell 25,000 customer meals next year, what is its margin of safety in total sales
dollars?
Multiple Choice
$40,000
$45,000
$90,000
$180,000
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