: 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 monthIf 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? $266,667. $100,000. $1,130,000. $50,000.
: 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 monthIf 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? $266,667. $100,000. $1,130,000. $50,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Honeysuckle Manufacturing has the following data:
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?
Selling Price | $ | 60 | |
Variable |
$ | 33 | |
Fixed manufacturing cost | $ | 250,000 | per month |
Variable selling & administrative costs | $ | 9 | |
Fixed selling & administrative costs | $ | 120,000 | per month |
$266,667.
|
||
$100,000.
|
||
$1,130,000.
|
||
$50,000.
|
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