What is the margin of safety if the break-even sales are $100,000 and actual sales are $150,000?

Practice Questions

1 question
Q1
What is the margin of safety if the break-even sales are $100,000 and actual sales are $150,000?
  1. $50,000
  2. $100,000
  3. $150,000
  4. $200,000

Questions & Step-by-step Solutions

1 item
Q
Q: What is the margin of safety if the break-even sales are $100,000 and actual sales are $150,000?
Solution: Margin of safety = Actual Sales - Break-even Sales = $150,000 - $100,000 = $50,000.
Steps: 6

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