Raven Company produces small lightweight camping trailers with rear kitchen facilities. The company’s fixed costs are $900,000 per year and its variable costs are 55% of the unit selling price of $16,000. What is the company’s margin of safety in sales dollars if the expected sales result in a net income of $180,000?
Question 19 options:
A)
$200,000
B)
$400,000
C)
$600,000
D)
$800,000
E)
none of the above