Snowbird”s margin of safety

| June 4, 2016

Question

The following information relates to Snowbird Corporation:

Sales at the break-even point

$312,500

Total fixed expenses

$250,000

Net operating income

$150,000

What is Snowbird”s margin of safety?

A) $62,500

B) $187,500

C) $100,000

D) $212,500

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