A Company with an Operating Income of $72,000 and a Contribution

question 39

Multiple Choice

A company with an operating income of $72,000 and a contribution margin ratio of 56% has a margin of safety of: (rounded)

• A)$40,320.
• B)$128,571.
• C)$163,636.
• D)It is not possible to determine the margin of safety from the information provideD.$72,000/.56 = $128,571

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Definitions:

Angina Pectoris

A condition marked by severe chest pain due to inadequate blood supply to the heart, indicating coronary artery disease.

Myocardial Infarction

A medical condition commonly known as a heart attack, caused by the interruption of blood flow to a part of the heart.

Mortality Rates

A measure of the frequency of occurrence of death in a defined population during a specified time period.

Heart Disease

A broad term for any condition affecting the heart, including coronary artery disease, heart attacks, congestive heart failure, and others, leading to impairment or failure of heart function.