Question
Eastwick produces and sells three products. Last month's results are as follows: P1 P2 P3 Revenues $ 200,000 $ 300,000 $ 300,000 Variable costs 50,000
Eastwick produces and sells three products. Last month's results are as follows:
| P1 | P2 | P3 | |||||||
| Revenues | $ | 200,000 | $ | 300,000 | $ | 300,000 | |||
| Variable costs | 50,000 | 150,000 | 128,000 | ||||||
Fixed costs total $300,000. What is Eastwick's margin of safety? (Assume the current product mix.)
Multiple Choice
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$68,293.
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$628,000.
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$291,525.
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$50,000.
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
