Mcmurty Corporation sells a product for $320 per unit. The product's current sales are 14,300 units...
Mcmurty Corporation sells a product for $320 per unit. The product's current sales are 14,300 units and its break-even sales are 10,153 units. The margin of safety as a percentage of sales is closest to:
Homework Answers
Margin of safety = Total sales - Break even sales
= 14300 - 10153
= 4147 units
Margin of safety as a percentage of sales = ( Margin of safety / total sales ) * 100
( 4147 / 14300 ) * 100
= 29 %
Thus margin of safety is closest to 29 % of sales
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