Question
Jazz Company has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (5,000 units) $ 250,000
Jazz Company has provided the following contribution format income statement. Assume that the following information is within the relevant range.
| Sales (5,000 units) | $ | 250,000 |
| Variable expenses | 150,000 | |
| Contribution margin | 100,000 | |
| Fixed expenses | 60,000 | |
| Net operating income | $ | 40,000 |
Jazz Companys margin of safety in dollars is closest to:
| a. | $100,000 | |
| b. | $150,000 | |
| c. | $ 40,000 | |
| d. | $210,000 |
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Costing
Authors: Terry Lucey
6th Edition
0826455107, 9780826455109
