Question
The following monthly data are available for the Wyatt Company and its only product: Unit selling price........................................ $36 Unit variable expenses............................... $28 Total fixed expenses..................................
The following monthly data are available for the Wyatt Company and its only product:
|
| Unit selling price........................................ | $36 |
|
| Unit variable expenses............................... | $28 |
|
| Total fixed expenses.................................. | $50,000 |
|
| Actual sales for the month of May.............. | 7,000 units |
The margin of safety for the company (in sales dollars) during May was: (Choose the closest answer. Margin of safety and break-even are NOT the same thing.)
| a. | $252,000 | |
| b. | $225,000 | |
| c. | $750 | |
| d. | $27,000 | |
| e. | $50,000 |
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Retail Industry IRS Audit Technique Guide
Authors: Internal Revenue Service
1st Edition
1304114783, 978-1304114785
