1. Evan's Electronics Boutique sells a digital camera. The following information was reported for the digital camera last month:

Sales	$	17,600
variable expenses		9,680
Contribution margin		7,920
Fixed costs		3,600
Net operating income	$	4,320

What is Evan's margin of safety in dollars and percent ?

2. Decaprio Inc. produces and sells a single product. The company presented the contribution income statement for the month of June.

Sales (8,800 units)	$	528,000
variable expenses		290,400
Contribution margin		237,600
Fixed costs		211,700
Net operating income	$	25,900

If the company sells 9,200 units, what would be its net operating income ?

Answer rating: 100% (QA)

Part 1 Contribution margin Sales Variable expenses 17600 9680 7920 CM rati... View the full answer