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A Business Has a Capacity of $4,000,000 of Sales, Actual

Question 80

Multiple Choice

A business has a capacity of $4,000,000 of sales, actual sales of $1,500,000, break-even sales of $900,000, fixed costs of $540,000, and variable costs that are 40% of sales.What is the margin of safety expressed as a percentage of sales?


A) 40%
B) 42%
C) 33%
D) 35%

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