What is the margin of safety percentage

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Question - Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):

Sales $21,200

Variable expenses 12,400

Contribution margin 8,800

Fixed expenses 6,952

Operating income $1,848

Required -

a. What is the margin of safety in dollars?

b. What is the margin of safety percentage?

Reference no: EM133116478

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