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Honeysuckle Manufacturing has the following data: Selling Price $ 75 Variable manufacturing cost $ 40 Fixed manufacturing costs $ 260,000 per month Variable selling &
Honeysuckle Manufacturing has the following data:
Selling Price | $ | 75 | |
Variable manufacturing cost | $ | 40 | |
Fixed manufacturing costs | $ | 260,000 | per month |
Variable selling & administrative costs | $ | 8 | |
Fixed selling & administrative costs | $ | 124,000 | per month |
If Honeysuckle has actual monthly sales of $1,570,000 and desires an operating profit of $57,000 per month, what is the margin of safety in sales dollars?
- $345,000.
- $503,333.
- $57,000.
- $1,186,000.
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