Barton Beverages Inc. sells cases of bottled water at $25 each and has variable costs of $10 for each case of water. Fixed costs per month are $30,000, and the accountants at Barton have reported to management that operating profit last month was $3,375. What is Barton's current margin of safety in terms of sales revenue dollars?

Question

Quizplus · Accepted Answer

The Answer of Barton Beverages Inc. sells cases of bottled water at $25 each and has variable costs of $10 for each case of water. Fixed costs per month are $30,000, and the accountants at Barton have reported to management that operating profit last month was $3,375. What is Barton's current margin of safety in terms of sales revenue dollars?