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

Multiple Choice

Honeysuckle Manufacturing has the following data:
$$\begin{array} { ll } \text { Selling Price } & \$ \quad 60 \\\text { Variable manufacturing cost } & \$ \quad 33 \\\text { Fixed manufacturing cost } & \$ 250,000 \text { per month } \\\text { Variable selling \& administrative costs } & \$ \quad 9 \\\text { Fixed selling \& administrative costs } & \$ 120,000 \text { per month }\end{array}$$

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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.

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