Hedman Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) $ 270,000 Variable expenses 202,500 Contribution margin 67,500 Fixed expenses 63,750 Net operating income $ 3,750 The margin of safety percentage is closest to: Group of answer choices 75% 1% 6% 24%

Hedman Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) $ 270,000 Variable expenses 202,500 Contribution margin 67,500 Fixed expenses 63,750 Net operating income $ 3,750 The margin of safety percentage is closest to: Group of answer choices 75% 1% 6% 24%

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Sales (9,000 units)	$ 270,000
Variable expenses	202,500
Contribution margin	67,500
Fixed expenses	63,750
Net operating income	$ 3,750

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