Company margin of safety in dollars

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The following is last month's contribution format income statement:

Sales (15,000 units)........$1,500,000
Variable expenses........... 900,000

Contribution margin......... 600,000
Fixed expenses.............. 500,000

Net operating income........ 100,000

What is the company's margin of safety in dollars?

a.$600,000

b.$100,000

c.$250,000

d.$1,500,000

Reference no: EM13153177

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