Stockmaster Corporation has provided the following contribution format income statement. Assume that the foll- is within the relevant range. $ 320,000 192,000 Sales (8,000 units) Variable expenses Contribution margin Fixed expenses 128,000 121,600 Net operating income $ 6,400 The margin of safety in dollars is closest to:
Stockmaster Corporation has provided the following contribution format income statement. Assume that the foll- is within the relevant range. $ 320,000 192,000 Sales (8,000 units) Variable expenses Contribution margin Fixed expenses 128,000 121,600 Net operating income $ 6,400 The margin of safety in dollars is closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Stockmaster Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
- Sales (8,000 units): $320,000
- Variable expenses: $192,000
- Contribution margin: $128,000
- Fixed expenses: $121,600
- Net operating income: $6,400
The margin of safety in dollars is closest to:
Transcribed Image Text:**Question:**
The margin of safety in dollars is closest to:
**Multiple Choice Options:**
- $128,000
- $16,000
- $121,600
- $6,400
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