Lake Sales had $2,200,000 in sales last month. The contribution margin ratio was 30% and operating profits were $180,000.
-What is Lake's margin of safety in sales dollars?
A) $480,000.
B) $600,000.
C) $2,020,000.
D) Cannot determine with the information given.

Question

Lake Sales had $2,200,000 in sales last month. The contribution margin ratio was 30% and operating profits were $180,000. 
-What is Lake's margin of safety in sales dollars?
A) $480,000.
B) $600,000.
C) $2,020,000.
D) Cannot determine with the information given.

Quizplus · Accepted Answer

The Answer of Lake Sales had $2,200,000 in sales last month. The contribution margin ratio was 30% and operating profits were $180,000. 
-What is Lake's margin of safety in sales dollars?
A) $480,000.
B) $600,000.
C) $2,020,000.
D) Cannot determine with the information given.

Lake Sales Had $2,200,000 in Sales Last Month