Reference no: EM132490234

Question 1: The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. If Burkett Corporation is able to achieve the budgeted level of sales, its margin of safety in dollars would be (Do not round intermediate calculations.):

Sales (61,000 units)                           1,464,000

Costs:

Direct materials                     689,800

Direct labor                       241,600

Fixed factory overhead                108,000

Variable factory overhead            151,600

Fixed marketing costs               111,600

Variable marketing costs          51,600                   1,354,200

Pretax income                         109,800

Multiple Choice:

Option a. $488,000.

Option b. $304,695.

Option c. $229,333.

Option d. $151,600.

Option e. $354,105.