Talk Time Cellular Sells Smart Phones for $150

question 39

Multiple Choice

Talk Time Cellular sells smart phones for $150.The unit variable cost per phone is $25 plus a selling commission of 10%.Fixed manufacturing costs total $5,600 per month, while fixed selling and administrative costs total $2,100.Talk Time expects sales of $12,300 during next year.How much is the margin of safety estimated for next year?

• A)$82
• B)$10,500
• C)$1,320
• D)$1,800

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Definitions:

Echinoderms

A phylum of marine animals characterized by radial symmetry, a calcareous skeleton, and a water vascular system, includes starfish and sea urchins.

Radial Symmetry

A form of symmetry found in some organisms, where body parts or structures radiate from a central point, allowing for multiple planes of symmetry.

Mantle

The layer of the earth between the crust and the outer core, involved in tectonic movements and volcanic activity.

Spiny Skin

Characteristic of echinoderms, a group of marine invertebrates including sea stars and sea urchins, featuring a unique external skeleton covered in hard plates and spines.