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Racer Industries had a break-even point at $800,000 in sales revenue and fixed costs of $200,000. When actual sales were $1,000,000 variable costs were $750,000.

Racer Industries had a break-even point at $800,000 in sales revenue and fixed costs of $200,000. When actual sales were $1,000,000 variable costs were $750,000. Determine (a) the margin of safety expressed in dollars, (b) the margin of safety expressed as a percentage of sales, (c) the contribution margin ratio, and (d) the operating income.

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