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John Anderson Company Below Is an Income Statement for John

Question 59

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John Anderson Company Below is an income statement for John Anderson Company:
 Sales $300,000 Variable costs (150,000)  Contribution margin $150,000 Fixed costs (100,000)  Profit before taxes $50,000\begin{array}{ll}\text { Sales } & \$ 300,000 \\\text { Variable costs } & \underline{(150,000) } \\\text { Contribution margin } & \$ 150,000 \\\text { Fixed costs } & \underline{(100,000) } \\\text { Profit before taxes } & \underline{\$ 50,000}\end{array} Refer to John Anderson Company.What was the company's margin of safety?


A) $50,000
B) $100,000
C) $150,000
D) $25,000

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