A company with a break-even point at $900000 in sales revenue and had fixed costs of $225000. When actual sales were $1000000 variable costs were
$750000. 1. Determine the margin of safety expressed in dollars:
a. $1000000
b. $900000
c. $100000
d. $225000
2. Determine the margin of safety expressed as a percentage of sales:
a. 10%
b. 90%
c. 1%
d. 9%
3. Determine the contribution margin ratio:
a. 35%
b. 25%
c. 30%
d. 15%
4. Determine the operating income:
a. $35000
b. $25000
c. $30000
d. $15000
5. Determine the total assets:
a. $1000000
b. $1900000
c. $2225000
d. Cannot determine from information given.