Old Canadian Company Has Sales of $500,000, Variable Costs of $425,000

Multiple Choice

Old Canadian Company has sales of $500,000, variable costs of $425,000, and fixed costs of $25,000.New World Company has sales of $500,000, variable costs of $200,000, and fixed costs of $250,000.New World's margin of safety ratio is

A) .17.
B) .33.
C) .67.
D) .83.