A company with a break-even point at $900,000 in sales revenue had fixed costs of $225,000. When actual sales were $1,000,000, variable costs were $750,000. Determine the following: Round your percentage answers to the nearest whole number. a. Margin of safety expressed in dollars $ b. Margin of safety expressed as a percentage of sales % c. Contribution margin ratio % d. Operating income $

a.  $100,000

b.  10%

c.  25%

d.  $25,000

Explanation:

a.

The MOS (Margin of Safety) means the excess sales over Break Even Point (the point of 0 profit).

Now formula is:

Margin of Safety = Actual Sales - Break Even Sales

So,

MOS = 1,000,000 - 900,000 = $100,000

b.

This is the previous answer as a percentage of total sales, which is 1,000,000. So we have the formula and

Margin of Safety Percentage = Margin of Safety / Actual Sales

So,

MOS (%) = 100,000/1,000,000 = 10%

c.

THe contribution margin ratio is the company's sales minus variable costs expressed as a ratio/percentage. The formula is:

Contribution Margin Ratio = (Sales - Variable Costs) / Sales

So,

CM Ratio = (1,000,000 - 750,000) / 1,000,000

CM Ratio = 25%

d.

The operating income is what a company has after it has subtracted both variable and fixed cost from its sales. The formula is:

Operating Income = Sales - Variable Costs - Fixed Costs

OI = 1,000,000 - 750,000 - 225,000 = 25000

OI = $25,000

i think the answer is a. dependable person

i hope this is right!

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.