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What is the company margin of safety in dollars

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Reference no: EM131777441

Question - The following is last month's contribution format income statement:

Sales (15,000 units)........$1,500,000

Variable expenses........... 900,000

Contribution margin......... 600,000

Fixed expenses.............. 500,000

Net operating income........ 100,000

What is the company's margin of safety in dollars?

a. $600,000

b. $100,000

c. $250,000

d. $1,500,000

Reference no: EM131777441

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