Robert Wilson Company
Below Is an Income Statement for Robert $\$ 400,000$

question 85

Multiple Choice

Robert Wilson Company
Below is an income statement for Robert Wilson Company:
Sales                                                                         $\$ 400,000$
Variable costs                                                          $\underline{(200,000) }$
Contribution margin                                                  $200,000
Fixed costs                                                            $\underline{(125,000) }$
Profit before taxes                                                  $\underline{\$75,000}$

Refer to Robert Wilson Company.What was the company's margin of safety?

• A)$ 37,500
• B)$ 75,000
• C)$125,000
• D)$150,000

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Definitions:

Cervical

Relating to the cervix, the lower, narrow part of the uterus that connects to the vagina, or relating to the cervical vertebrae in the neck.

Sacral

Pertaining to the sacrum, a large, triangular bone at the base of the spine that forms the back wall of the pelvis.

Synovial

Pertaining to or secreting synovia, a lubricating fluid found in the cavities of synovial joints, facilitating smooth movement.

Cartilaginous

Relating to, or made of cartilage, a flexible connective tissue found in various parts of the body.