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

Question 92

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