The Following Monthly Data Are Available for the Eager Company

question 361

Multiple Choice

The following monthly data are available for the Eager Company and its only product:
What was the margin of safety for the company for March?

• A) $315,000.
• B) $225,000.
• C) $135,000.
• D) $495,000.Margin safety = 7,000 * $75 - 180,000/.60 = $225,000.

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Definitions:

Distribution

The process by which goods get distributed or spread out across different locations, or the statistical spread of values in a dataset.

Radiometric Dating

Method of estimating the age of a rock or fossil by measuring the content and proportions of a radioisotope and its daughter elements.

Volcanic Rocks

Igneous rocks that are formed from the solidification of lava or magma ejected from volcanoes.

Sedimentary Rock

A type of rock formed by the accumulation and consolidation of mineral and organic particles, precipitated from solution, or deposited as insoluble residue.