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Eastwick produces and sells three products. Last month's results are as follows: P1 P2 P3 Revenues $ 280,000 $ 380,000 $ 380,000 Variable costs 58,000
Eastwick produces and sells three products. Last month's results are as follows:
P1 | P2 | P3 | |||||||
Revenues | $ | 280,000 | $ | 380,000 | $ | 380,000 | |||
Variable costs | 58,000 | 230,000 | 138,400 | ||||||
Fixed costs total $380,000. What is Eastwick's margin of safety? (Assume the current product mix.)
A. $113.171.
B. $806,400
C.$58,000.
D. $395.932
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