Hedman Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) $ 270,000 Variable expenses 202,500 Contribution margin 67,500 Fixed expenses 63,750 Net operating income $ 3,750 The margin of safety percentage is closest to: Group of answer choices 75% 1% 6% 24%
Hedman Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) $ 270,000 Variable expenses 202,500 Contribution margin 67,500 Fixed expenses 63,750 Net operating income $ 3,750 The margin of safety percentage is closest to: Group of answer choices 75% 1% 6% 24%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hedman Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
| Sales (9,000 units) | $ 270,000 |
|---|---|
| Variable expenses | 202,500 |
| Contribution margin | 67,500 |
| Fixed expenses | 63,750 |
| Net operating income | $ 3,750 |
The margin of safety percentage is closest to:
Group of answer choices
75%
1%
6%
24%
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