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If a Business Had a Capacity of $10,000,000 of Sales,actual

Question 49

Multiple Choice

If a business had a capacity of $10,000,000 of sales,actual sales were $6,000,000,break-even sales was $4,500,000,fixed costs amounted to $1,800,000,and variable costs amounted to 60% of sales,what is the margin of safety expressed as a percentage of sales?


A) 25%
B) 18%
C) 33.3%
D) 15%

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