Question 4

Shambo Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (3,000 units)	$	60,000
Variable expenses		42,000
Contribution margin		18,000
Fixed expenses		13,200
Net operating income	$	4,800

The margin of safety percentage is closest to:

		27%
		70%
		22%
		8%