Question
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):
| Sales | $ | 55,000 |
| Variable expenses | 33,000 | |
| Contribution margin | 22,000 | |
| Fixed expenses | 14,960 | |
| Net operating income | $ | 7,040 |
11. What is the margin of safety in dollars? What is the margin of safety percentage?
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Financial and Managerial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
2nd edition
978-1118334263
