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Davison Co. prepared the following contribution format income statement based on a sales volume of...

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Accounting

Davison Co. prepared the following contribution format income statement based on a sales volume of 10,000 units (the relevant range of production is 5,000 units to 15,000 units):
Sales $ 240,000
Variable expenses 144,000
Contribution margin 96,000
Fixed expenses 72,000
Net operating income $ 24,000
Required:
a. What is the margin of safety in dollars? (Do not round intermediate calculations.)
b. What is the margin of safety percentage?

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