Kanmore Produces and Sells Three Products

question 80

Multiple Choice

Kanmore produces and sells three products.Last month's results are as follows: Fixed costs total $200,000.What is Kanmore's margin of safety? (Assume the current product mix. )

• A)$83,333.
• B)$40,000.
• C)$460,000.
• D)$115,385.

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Definitions:

Utility Computing

A model in computing where processing power, storage, and infrastructure are provided as a metered service similar to a utility bill.

Pay-as-you-go

A pricing model where customers only pay for the resources or services they use, avoiding upfront costs and allowing for flexible budget management.

Grid Computing

A technology that connects geographically dispersed computers to create a virtual supercomputer for processing intensive tasks.

Utility Computing

A service provisioning model in which computing resources are provided and billed like traditional utilities such as electricity.