What is the margin of safety if the break-even sales are $200,000 and the actual sales are $300,000?

Practice Questions

1 question
Q1
What is the margin of safety if the break-even sales are $200,000 and the actual sales are $300,000?
  1. $100,000
  2. $50,000
  3. $200,000
  4. $300,000

Questions & Step-by-step Solutions

1 item
Q
Q: What is the margin of safety if the break-even sales are $200,000 and the actual sales are $300,000?
Solution: Margin of Safety = Actual Sales - Break-even Sales = $300,000 - $200,000 = $100,000.
Steps: 5

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