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Rainbow Manufacturing has the following data: Selling price: $140 Variable manufacturing cost: $87...

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Accounting

Rainbow Manufacturing has the following data:

Selling price: $140

Variable manufacturing cost: $87

Fixed manufacturing cost $250,000 per month

Variable selling & adminstrative costs $22

Fixed selling & adminstrative costs $188,000 per month

If Rainbow Manufacturing has actual monthly sales of $2,100,000 and desires an operating profit of $75,000 per month, what is the margin of safety in sales dollars?

a. $242,972

b. $154,299

c $75,000

d. $250,000

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