The following is last month's contribution format income statement: Total Sales (12,000) $300,000 Variable costs $225,000 Contribution margin $75,000 Fixed costs $56,000 Net income $19,000 What is the company's margin of safety expressed in units? O A. 2,500 O B. 3,040 O C. 8,960 O D. 12,000

The following is last month's contribution format income statement: Total Sales (12,000) $300,000 Variable costs $225,000 Contribution margin $75,000 Fixed costs $56,000 Net income $19,000 What is the company's margin of safety expressed in units? O A. 2,500 O B. 3,040 O C. 8,960 O D. 12,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Question

The following is last month's contribution format income statement:
Total
Sales (12,000)
$300,000
Variable costs
$225,000
Contribution margin
$75,000
Fixed costs
$56,000
Net income
$19,000
What is the company's margin of safety expressed in units?
O A. 2,500
B. 3,040
O C. 8,960
O D. 12,000

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