The Following Is Last Month's Contribution Format Income Statement What Is the Company's Margin of Safety Percentage?
A)42

question 77

Multiple Choice

The following is last month's contribution format income statement: $$\begin{array} { | l | c | } \hline \text { Sales (12,000 units) } & \$ 1,200,000 \\\hline \text { Less variable expenses } & 700,000 \\\hline \text { Contribution margin } & 500,000 \\\hline \text { Less fixed expenses } & 300,000 \\\hline \text { Net income } & \$ 200,000 \\\hline\end{array}$$ What is the company's margin of safety percentage?

• A)42%.
• B)40%.
• C)17%.
• D)20%.

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Definitions:

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A location known for the Rock Springs Massacre, an 1885 riot against Chinese immigrant miners in Rock Springs, Wyoming, highlighting racial tensions in the American West.

Wyoming

A U.S. state known for its vast plains and Rocky Mountain ranges, became the first state to grant women the right to vote in 1869.

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