Question

Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars for Flannigan Company.
A.$1,560,000.
B.$2,612,612.
C.$1,587,388.
D.$2,895,652.
E.$2,460,000.

Answer

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