Question

Below is an income statement for Jean Simmons Company: Sales $300,000 Variable costs (150,000 ) Contribution...

Below is an income statement for Jean Simmons Company:

Sales

$300,000
Variable costs

(150,000 )
Contribution margin

$150,000
Fixed costs

(100,000 )
Profit before taxes

$ 50,000

a.

Refer to Jean Simmons Company. What was the company's margin of safety?

$50,000

$100,000

$150,000

$25,000

b.

Refer to Jean Simmons Company. If the unit sales price for Jean Simmons’s sole product was $10, how many units would it have needed to sell to produce a profit of $40,000?

27,500

29,000

28,000

can't be determined from the information given
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