Below is an income statement for Jean Simmons Company:

Sales	$300,000
Variable costs	(150,000 )
Contribution margin	$150,000
Fixed costs	(100,000 )
Profit before taxes	$ 50,000

a.

Refer to Jean Simmons Company. What was the company's margin of safety?

		$50,000
		$100,000
		$150,000
		$25,000

b.

Refer to Jean Simmons Company. If the unit sales price for Jean Simmonss sole product was $10, how many units would it have needed to sell to produce a profit of $40,000?

		27,500
		29,000
		28,000
		can't be determined from the information given