Question

The Dabeth Company has sales of $400,000, and the breakeven point in sales dollars is $300,000....

The Dabeth Company has sales of $400,000, and the breakeven point in sales dollars is $300,000. Determine the company's margin of safety.

75%

30%

25%

70%

0 0
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Answer #1

Margin of safety = (Sales - Break even sales) / Sales * 100

= ($400,000 - $300,000) / $400,000 * 100

= 25%

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