Determine the margin of safety expressed in dollars


Question: Lauder Company had fixed costs of $282,500, variable costs of $645,000, and actual sales amounted to $1,100,000. If the company has a break-even point at $750,000 in sales revenue.

Q1. Determine the margin of safety expressed in dollars.

Q2. Determine the margin of safety expressed as a percentage of sales. Enter the percentage amount as a whole number (for example, enter 10% as "10").

Q3. Determine the contribution margin ratio.

Q4. Determine the operating income.

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Accounting Basics: Determine the margin of safety expressed in dollars
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