Redstone Company has gathered the following total cost info for the year ended December 31, 2012. There were no beginning or ending inventories. The company produced and sold 10,000 units.

Sales Revenue : $70,000

Direct Materials : $9,000

Direct Labor : $7,000

Variable Manufacturing Overhead : $2,000

Fixed Manufacturing Overhead : $10,000

Variable Selling and Adminstrative Expense : $6,000

Fixed Selling and Adminstrative Expense : $10,000

Question : The company's margin of safety (in dollars) for 2012 is closest to

A) $39,565

B) $70,000

C) $56,538

D) $43,077

E) None

Answer rating: 100% (QA)

The Contribution margin is calculated below The contiribu... View the full answer