menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Management Accounting
  4. Exam
    Exam 3: Defining and Using Cost Estimates
  5. Question
    Spandex, Inc
Solved

Spandex, Inc

Question 53

Question 53

Multiple Choice

Spandex, Inc., has fixed costs of $36,000 and a contribution ratio of 20%. If sales are $200,000, what is the margin of safety percentage?


A) 2%
B) 10%
C) 20%
D) 26%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q48: Siche Company manufactures cell phone covers that

Q49: The basic cost estimate is (variable cost

Q50: Rogers Company has the following data

Q51: Bargain Press is considering publishing a

Q52: Thompson Company produces scientific and business calculators.

Q54: A product cost is incurred every period

Q55: Lar Company has found that its

Q56: Material cost is the significant costs (raw

Q57: Company A's cost structure includes costs that

Q58: Costs set a limit on profit given

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines