Solved

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

Question 93

Multiple Choice

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


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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q13: The point where the profit line intersects

Q88: A firm operated at 90% of capacity

Q90: The point where the profit line intersects

Q92: Company M had fixed costs of $262,500,variable

Q94: As production increases,what would you expect to

Q95: For the current year ending January 31,Ringo

Q96: If fixed costs are $500,000 and the

Q97: If fixed costs are $600,000 and the

Q98: Vest Food Co.has the following operating data:<br><img

Q101: Which of the following costs is a