The Following Is Last Month's Contribution Format Income Statement What Is the Company's Margin of Safety Percentage?
A)42

The following is last month's contribution format income statement: $$\begin{array} { | l | c | } \hline \text { Sales (12,000 units) } & \$ 1,200,000 \\\hline \text { Less variable expenses } & 700,000 \\\hline \text { Contribution margin } & 500,000 \\\hline \text { Less fixed expenses } & 300,000 \\\hline \text { Net income } & \$ 200,000 \\\hline\end{array}$$ What is the company's margin of safety percentage?

A) 42%.
B) 40%.
C) 17%.
D) 20%.