Brockton has a contribution margin ratio of 20%. If the company's sales revenue is $1,000 greater than their break-even point in sales dollars, their net income:
Homework Answers
The sales above break even sales will be margin of safety for Brockton.
Net income = Margin of safety x Contribution percentage
= 1000 x 20% = $ 200.
Hence correct answer is Option C.
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