The following monthly data are available forLumberyard Company which produces onlyone product:Break-even level in sales of dollars: $530 000Budgeted sales in dollars for the month ofJune: $720 000How much is the margin of safety for thecompany for June?O a. 190 000O b. 1.35O c. 1250 000O d. 0.73O e.e. None

Companies always maintain the sufficient margin of safety so that they can survive for longer…

Lumberyard Company which produces on one product: Break-even level in sales of dollars: $530 0 Budgeted sales in dollars for the month of June: $720 000 How much is the margin of safety for the company for June? a. 190 000 O b. 1.35

Lumberyard Company which produces on one product: Break-even level in sales of dollars: $530 0 Budgeted sales in dollars for the month of June: $720 000 How much is the margin of safety for the company for June? a. 190 000 O b. 1.35

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following monthly data are available for
Lumberyard Company which produces only
one product:
Break-even level in sales of dollars: $530 000
Budgeted sales in dollars for the month of
June: $720 000
How much is the margin of safety for the
company for June?
O a. 190 000
O b. 1.35
O c. 1250 000
O d. 0.73
O e.
e. None

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