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Honeysuckle Manufacturing Has the Following Data -
If Honeysuckle Has Actual Monthly Sales of $1,500,000 and
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Question 1

Multiple Choice

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 \begin{array} { ll } \text { Selling Price } & \$ \quad 60 \\\text { Variable manufacturing cost } & \$ \quad 33 \\\text { Fixed manufacturing cost } & \$ 250,000 \text { per month } \\\text { Variable selling \& administrative costs } & \$ \quad 9 \\\text { Fixed selling \& administrative costs } & \$ 120,000 \text { per month }\end{array}

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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?


A) $100,000.
B) $266,667.
C) $50,000.
D) $1,130,000.

Correct Answer:

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