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:

Sales Manager

A professional responsible for directing and overseeing a team of salespeople, setting goals, and developing strategies to increase sales performance.

Forced Distribution

A performance management system where employees are ranked in accordance with a pre-determined distribution curve.

Multiple Rater System

A feedback system typically used in performance assessments where several evaluators provide input on an individual's performance.

Effective Appraisal

The process of evaluating an employee's job performance in a constructive manner, aiming to encourage professional growth and improve future performance.