As the masses of two objects decrease, how does the gravitational force between the two bodies change? a it acts on all objects all of the time. b it only acts on objects that are in contact. c it only acts on objects that are moving apart. d it only acts on objects that are close to each other.

$5,000

Explanation:

Sales $20,000

Variable expenses $12,000

Contribution margin $8,000

Fixed expenses $6,000

Net operating income $2,000

margin of safety in $ = current sales level - break even point

margin of safety in % = (current sales level - break even point) / current sales level

first we need to calculate the contribution margin per unit = $20 - $12 = $8 per unit

break even point = fixed costs / contribution margin = $6,000 / $8 = 750 units

sales level at break even point = 750 x $20 = $15,000

margin of safety in $ = $20,000 - $15,000 = $5,000

margin of safety = ($20,000 - $15,000) / $20,000 = $5,000 / $20,000 = 25%