The Statement of Financial Performance for LA Blues Is If the Break-Even Point in Sales Dollars Is $62,500, What

Multiple Choice

The statement of financial performance for LA Blues is: $$\begin{array} { l r } \text { Sales } & \$ 300,000 \\\text { Variable Expenses } & \$ 200,000 \\\text { Contribution Margin } & \$ 100,000 \\\text { Fixed Expenses } & \$ 20,000 \\\text { Profit } & \$ 80,000\end{array}$$ If the break-even point in sales dollars is $62,500, what is the margin of safety?

A) $7,500.
B) $20,000.
C) $17,500.
D) cannot be calculated.