White Mountains Canning Company

Data:

Sales in Units $80,000$

Sale price per unit $$7\mathrm{.}95$

Variable expense per unit $$3\mathrm{.}00$

Fixed Expenses in Total $$250,000$

Contribution Format Income Statement Margin of Safety

Total Per Unit $\%$ Actual sales $($a$)$

Sales $$80,000$ $$7\mathrm{.}95$ Break$-$even sales $($b$)$

Variable expenses $3\mathrm{.}00$ Margin of safety in dollars $($a$)($b$)$

Contribution margin Margin of safety percentage

Fixed expenses $250,000$

Net operating income

Net profit margin percentage