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

question 53

Multiple Choice

The statement of financial performance for LA Blues is: $\begin{array}{ll}\text { Sales } & \$ 300,000 \\\text { Variable Expenses } & \$ 200,000 \\\text { Contribution Margin } & \$ 100,000 \\\text { Fixed Expenses } & \$ 20,000 \\\text { Profit } & \$ 80,000\end{array}$ 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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Definitions:

Sum of Squares

A statistical measure that quantifies the variability or dispersion of a set of numbers by squaring their deviations from the mean.

Coefficient of Determination

A statistical measure represented by R^2, which shows the proportion of variance in the dependent variable that is predictable from the independent variables.

Sum of Squares

A statistical measure that quantifies the variance or dispersion of a set of numbers by summing the squared differences between each number and the mean.

Error SSE

The sum of squared errors (SSE) is a measure used in statistics to quantify the discrepancy between the data and an estimation model.