Baldwin's Bagel Shop Had the Following Activity for December: Total

question 61

Multiple Choice

Baldwin's Bagel Shop had the following activity for December: Total bagels sold 17,000
Total revenues $595,000
Total fixed costs 99,000
Total variable costs 357,000
What was Baldwin's margin of safety, in dollars?

• A) $430,000
• B) $247,500
• C) $347,500
• D) $357,000

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Definitions:

Physical Count

The process of manually counting the actual inventory on hand at a particular time to verify the quantities listed in accounting records.

Job Order Cost System

An accounting system that tracks costs individually for each job, rather than using a standard method for all jobs, suitable for companies producing unique or custom products.

Equivalent Units

a concept used in cost accounting to indicate a standard amount of work done on incomplete or partially manufactured units.

Conversion Costs

Costs incurred to convert raw materials into finished products, typically including direct labor and manufacturing overhead.