Answer the Following Questions Using the Information Below

question 153

Multiple Choice

Answer the following questions using the information below:
Dr. Charles Hunter, MD, performs a certain outpatient procedure for $1,000. His fixed costs are $20,000, while his variable costs are $500 per procedure. Dr. Hunter currently plans to perform 200 procedures this month.
-What is the margin of safety assuming 100 procedures are budgeted?

• A)$40,000 or 40 times
• B)$50,000 or 50 times
• C)$60,000 or 60 times
• D)$100,000 or 100 times