Eastwick produces and sells three products. Last month's results are as follows: P1 P2 P3 Revenues $ 100,000 $ 200,000 $ 200,000 Variable costs 40,000 140,000 80,000Fixed costs total $200,000. What is Eastwick's margin of safety? (Assume the current product mix.) $115,385. $40,000. $83,333. $460,000.
Eastwick produces and sells three products. Last month's results are as follows: P1 P2 P3 Revenues $ 100,000 $ 200,000 $ 200,000 Variable costs 40,000 140,000 80,000Fixed costs total $200,000. What is Eastwick's margin of safety? (Assume the current product mix.) $115,385. $40,000. $83,333. $460,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Eastwick produces and sells three products. Last month's results are as follows:
Fixed costs total $200,000. What is Eastwick's margin of safety? (Assume the current product mix.)
P1 | P2 | P3 | ||||||
Revenues | $ | 100,000 | $ | 200,000 | $ | 200,000 | ||
Variable costs | 40,000 | 140,000 | 80,000 |
$115,385.
|
||
$40,000.
|
||
$83,333.
|
||
$460,000.
|
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