Reference no: EM132967745

Problem 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 764,800
Direct labor 241,000
Fixed factory overhead 105,000
Variable factory overhead 151,000
Fixed marketing costs 111,000
Variable marketing costs 51,000 1,423,800
Pretax income 40,4200

Multiple Choice

Option 1: $263,235.
Option 2: $151,000.
Option 3: $291,429.
Option 4: $249,165.
Option 5: $229,714.