Young Company has a margin of safety percentage of 20%. The break-even in sales dollars point is $400,000 and the variable costs are 40% of sales. Given this information, the net income is:

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The margin of safety percentage is calculated as (Actual Sales - Break-even Sales) / Actual Sales. Given a margin of safety of 20%, this means that the actual sales are 25% higher than the break-even sales (since 20% of the actual sales amount to the difference between actual sales and break-even sales). Therefore, actual sales are $500,000 ($400,000 / 0.8). With variable costs at 40% of sales, the total variable costs amount to $200,000 (40% of $500,000). The contribution margin is thus $300,000 ($500,000 - $200,000). Since the break-even point in sales dollars is $400,000, and fixed costs are covered at the break-even point, the net income is the contribution margin minus fixed costs above the break-even point, which is $100,000 ($500,000 - $400,000). However, without explicit fixed costs or a clear profit margin beyond the break-even, we cannot directly calculate net income from the given data. The provided choices and calculations do not align with standard accounting principles for calculating net income directly from the given information.

Young Company Has a Margin of Safety Percentage of 20