Terry's Donut Shop Had the Following Activity for December What Was Terry's Margin of Safety, in Dollars?
A) $430,000

question 84

Multiple Choice

Terry's Donut Shop had the following activity for December: $$\begin{array} { l l } \text { Total donuts sold } & 17,000 \\\text { Total revenues } & \$ 595,000 \\\text { Total fixed costs } & 99,000 \\\text { Total variable costs } & 357,000\end{array}$$ What was Terry's margin of safety, in dollars?

• A) $430,000
• B) $247,500
• C) $347,500
• D) $357,000

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Definitions:

Tax

Mandatory monetary contributions or other forms of taxes levied on individuals or entities by government agencies to support government operations and a range of public services.

Supply Curves

A graphical representation that shows the relationship between the price of a good and the quantity of that good that producers are willing to supply.

Levied

Levied refers to the imposition of a tax, fee, or fine by a governmental authority, requiring payment from individuals or organizations.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied by producers over a period of time.