Margin of Safety Heads-Up Company sold 6,600 scooter helmets at $80.00 each this fiscal year. Unit variable costs were $50.00 (includes direct material, direct labor, variable manufacturing overhead, and variable selling expense). Total fixed costs equaled $82,500 (includes fixed manufacturing overhead and fixed selling and administrative expense). Operating income for the year was $115,500. Calculate the margin of safety in units. Select one: a. 3,850 b. 1,375 c. 6,600 d. 4,400 e. 2,750

Margin of Safety Heads-Up Company sold 6,600 scooter helmets at $80.00 each this fiscal year. Unit variable costs were $50.00 (includes direct material, direct labor, variable manufacturing overhead, and variable selling expense). Total fixed costs equaled $82,500 (includes fixed manufacturing overhead and fixed selling and administrative expense). Operating income for the year was $115,500. Calculate the margin of safety in units. Select one: a. 3,850 b. 1,375 c. 6,600 d. 4,400 e. 2,750

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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