Davis Corporation manufactures a single product. The selling price is $340 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. What will be the monthly margin of safety (in dollars) if 200 units are sold each month? Select one: a. $82,375. b. $70,375. OC. $47,375. d. $12,375.
Davis Corporation manufactures a single product. The selling price is $340 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. What will be the monthly margin of safety (in dollars) if 200 units are sold each month? Select one: a. $82,375. b. $70,375. OC. $47,375. d. $12,375.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...
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![Davis Corporation manufactures a single product. The selling
price is $340 per unit, and variable costs amount to $68 per unit.
The fixed costs are $16,500 per month.
What will be the monthly margin of safety (in dollars) if 200 units
are sold each month?
Select one:
a. $82,375.
b. $70,375.
Oc. $47,375.
Od. $12,375.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb588d2b2-0361-4bbc-9ba6-b559464a3ce0%2Ff61cc1ed-fff0-45e4-8730-b96a996e3f01%2F3ik3jat_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Davis Corporation manufactures a single product. The selling
price is $340 per unit, and variable costs amount to $68 per unit.
The fixed costs are $16,500 per month.
What will be the monthly margin of safety (in dollars) if 200 units
are sold each month?
Select one:
a. $82,375.
b. $70,375.
Oc. $47,375.
Od. $12,375.
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