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

question 36

Multiple Choice

The following is last month's contribution format income statement:
$\begin{array}{|l|r|}\hline \text { Sales }(15,000 \text { units) } & \$ 1,500,000 \\\hline \text { Less: variable expenses } & 900,000 \\\hline \text { Contribution margin } & 600,000 \\\hline \text { Less: fixed expenses } & \$ 00,000 \\\hline \text { Operating income } & \$ 100,000 \\\hline\end{array}$
What is the company's margin of safety in dollars?

• A) $100,000.
• B) $600,000.
• C) $1,500,000.
• D) $250,000.

---

Definitions:

Accelerating Pace

An increasing rate of change or development in a particular process or activity, often perceived in technology, culture, and societal norms.

Social Change

Significant alteration over time in behavior patterns, cultural values and norms, or social structures within a society.

Status Quo

The existing state or condition of affairs, often used to refer to the current norms and power structures resistant to change.

Sociological Approach

A way of studying society that involves understanding human behavior by placing it within its broader social context.