The Following Monthly Data Are Available for Heffernan, Inc

question 26

Multiple Choice

The following monthly data are available for Heffernan, 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:

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