Palmer Company Below Is an Income Statement for Palmer Company

question 116

Multiple Choice

Palmer Company Below is an income statement for Palmer Company:
$\begin{array}{ll}\text { Sales } & \$ 400,000 \\\text { Variable costs } & \underline{(125,000) } \\\text { Contribution margin } & \$ 275,000 \\\text { Fixed costs } & \underline{(200,000) } \\\text { Profit before taxes } & \underline{\$ 75,000}\end{array}$ Refer to Palmer Company.What was Palmer's margin of safety?

• A)$200,000
• B)$75,000
• C)$100,000
• D)$109,091

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