Author Question: Bonita Corporation produces only one product. Monthly data includes: selling price per unit, $42; ... (Read 48 times)

jojoperlo_ · **on:** Feb 5, 2023

Question 1

Cross Creek Company sells concrete culverts. Currently, the company's sales revenue is $900,000, variable costs total $450,000, and fixed costs total $300,000. If Cross Creek's controller has calculated the company's break-even point to be $597,000, what is the company's margin of safety?
◦ $15,000
◦ $153,000
◦ $447,000
◦ $303,000

Question 2

Bonita Corporation produces only one product. Monthly data includes: selling price per unit, $42; unit variable expenses, $14; total fixed expenses, $84,000; actual sales for the month of June, 4,000 units. What is the margin of safety?
◦ $126,000
◦ $1,000
◦ $42,000
◦ $84,000

Hamad · **Reply #1 on:** Feb 5, 2023

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