Talk Time Cellular sells smart phones for $150.The unit variable cost per phone is $25 plus a selling commission of 10%.Fixed manufacturing costs total $5,600 per month, while fixed selling and administrative costs total $2,100.Talk Time expects sales of $12,300 during next year.How much is the margin of safety estimated for next year?
A) $82
B) $10,500
C) $1,320
D) $1,800
Correct Answer:
Verified
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