Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 What is the current Margin of Safety of the company? O none of the above O 20 percent O 50 percent O 30 percent O 40 percent

Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 What is the current Margin of Safety of the company? O none of the above O 20 percent O 50 percent O 30 percent O 40 percent

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Sales (20,000 units @ 60 per unit) $1,200,000
Less: Variable cost 20,000@ $45 900,000
Contribution margin 300,000
Less fixed cost 240,000
Net income 60,000
What is the current Margin of Safety of the company?
O none of the above
O 20 percent
O 50 percent
O 30 percent
O 40 percent

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