Question - The following is last month's contribution format income statement:
Sales (15,000 units)........$1,500,000
Variable expenses........... 900,000
Contribution margin......... 600,000
Fixed expenses.............. 500,000
Net operating income........ 100,000
What is the company's margin of safety in dollars?
a. $600,000
b. $100,000
c. $250,000
d. $1,500,000