The following is Addison Corporations contribution format income statements for last month.

The company has no beginning or ending inventories. A total of 10,000 units were produced and sold last month.

The following is last months contribution format income statement:

Sales (10,000 units). $ 1,200,000

Variable expenses .. 800,000

Contribution margin 400,000

Fixed expenses 240,000

Net operating income.. $ 160,000

Determine the margin of safety.

		A) $720,000
		B) $480,000
		C) $48,000
		D) $400,000