The Mofs-187 Companys contribution format income statement for last month is given below:

Sales (44,000 units $24 per unit)	$	1,056,000
Variable expenses		739,200
Contribution margin		316,800
Fixed expenses		253,440
Net operating income	$	63,360

The company considers renovating its operations by purchasing a new machine that would reduce variable expenses by $7.20 per unit. However, fixed expenses would increase to a total of $570,240 each month. Using the new machine would not cause a change in monthly sales quantity or price per unit. What would the company's margin of safety in dollars be if it purchases and uses the new machine?

Brewer 8e Rechecks 2018-07-28

rev: 08_16_2018_QC_CS-133748

Multiple Choice

• $950,400

• $105,600

• $211,200

• $844,800