Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Is there anything out of bounds?

Answered: 1 week ago