The Following Monthly Data Are Available for Lyle, Inc

question 172

Multiple Choice

The following monthly data are available for Lyle, Inc. which produces only one product: Selling price per unit, $42; Unit variable expenses, $14; Total fixed expenses, $70,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June?

• A) $42,000
• B) $63,000
• C) $37,800
• D) $1,500

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Definitions:

Personal in Nature

Refers to something that is intended for or affects an individual in a private, intimate, or personal capacity.

Assignment

The transfer of rights or property from one party to another.

Creditor Beneficiaries

A creditor beneficiary is a third party that benefits from a contract wherein the promisor agrees to pay the promisee's debt to the third party.

Assignment of Rights

The transfer of legal rights from one party to another, often involving debts or benefits under a contract.