Em sales had $2,200,000 in sales last month. the contribution margin ratio was 30% and operating profits were $180,000. what is em's margin of safety is sales dollars? $480,000. $600,000. $2,020,000. cannot determine with the information given.

Calculation of margin of safety in sales dollars:

We are given that Em sales had $2,200,000 in sales last month and the contribution margin ratio was 30% and operating profits were $180,000.

We can calculate fixed cost with the help of following formula:

Fixed Costs  =( Sales * contribution margin ratio) - operating profits

= (2200000*30%)-180000

= $ 480,000

Now we can calculate Breakevens Dollar Sales as follows:

Breakevens Dollar Sales = Fixed Cost / Contribution Margin %

= 480,000/30%

= $1,600,000

Finally, we can calculate the margin of safety in sales dollars as follows:

The margin of safety in sales dollars =  Actual Sales – Breakevens sales

= 2200000-1600000

=$600,000

Hence, Margin of safety in sales dollars is $600,000

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the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20