The Following Monthly Data Are Available for Wackadoos, Inc

question 13

Multiple Choice

The following monthly data are available for Wackadoos, Inc.which produces only one product: Selling price per unit, $42; Unit variable expenses, $14; Total fixed expenses, $42,000; Actual sales for the month of June, 4,000 units.How much is the margin of safety for the company for June?

• A)$70,000
• B)$105,000
• C)$63,000
• D)$2,500

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Definitions:

Discontinued Operations

Components of a business that have been sold or otherwise disposed of, and which are reported separately in the financial statements to give a clear view of ongoing operations.

Disposal Group

A set of assets and possibly liabilities that a company plans to dispose of in a single transaction or plan.

IFRS Rules

The set of international accounting standards issued by the International Accounting Standards Board (IASB) that dictate how particular types of transactions and other events should be reported in financial statements.

U.S.GAAP

The Generally Accepted Accounting Principles in the United States, a framework of accounting standards, principles, and procedures used to compile financial statements.