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Honeysuckle Manufacturing has the following data: Selling Price $ 60 Variable manufacturing cost $ 33 Fixed manufacturing cost $ 250,000 per month Variable selling &
Honeysuckle Manufacturing has the following data:
Selling Price | $ | 60 | |
Variable manufacturing cost | $ | 33 | |
Fixed manufacturing cost | $ | 250,000 | per month |
Variable selling & administrative costs | $ | 9 | |
Fixed selling & administrative costs | $ | 120,000 | per month |
If Honeysuckle has actual monthly sales of $1,500,000 and desires an operating profit of $50,000 per month, what is the margin of safety in sales dollars?
$100,000. | ||
$266,667. | ||
$1,130,000. | ||
$50,000. |
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