A Company with a Break-Even Point at $900,000 in Sales

question 133

Short Answer

A company with a break-even point at $900,000 in sales revenue had fixed costs of $225,000. When actual sales were
$1,000,000, variable costs were $750,000. Determine:
(a) the margin of safety expressed in dollars
(b) the margin of safety expressed as a percentage of sales
(c) the contribution margin ratio
(d) the operating income.

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