The Statement of Financial Performance for LA Blues Is If the Break-Even Point in Sales Dollars Is $62,500, What

question 56

Multiple Choice

The statement of financial performance for LA Blues is: $$\begin{array} { l r } \text { Sales } & \$ 300,000 \\\text { Variable Expenses } & \$ 200,000 \\\text { Contribution Margin } & \$ 100,000 \\\text { Fixed Expenses } & \$ 20,000 \\\text { Profit } & \$ 80,000\end{array}$$ If the break-even point in sales dollars is $62,500, what is the margin of safety?

• A)$7,500.
• B)$20,000.
• C)$17,500.
• D)cannot be calculated.

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