Calculate the Margin of Safety, expressed as a percentage of Sales, given the following data: Sales = $6,000,000.00 Variable Costs = 60% of Sales Fixed Costs = $1,800,000.00 Break-Even Sales = $4,500,000.00 Maximum Capacity of Sales = $10,000,000.00
Calculate the Margin of Safety, expressed as a percentage of Sales, given the following data: Sales = $6,000,000.00 Variable Costs = 60% of Sales Fixed Costs = $1,800,000.00 Break-Even Sales = $4,500,000.00 Maximum Capacity of Sales = $10,000,000.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Calculate the Margin of Safety, expressed as a percentage of Sales, given the following
data:
Sales = $6,000,000.00
Variable Costs = 60% of Sales
Fixed Costs = $1,800,000.00
Break-Even Sales - $4,500,000.00
Maximum Capacity of Sales = $10,000,000.00
15.0%
18.0%
33.3%
25.0%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F94589190-d7d8-41be-9c6e-d2d51b756765%2F45eae6a4-69f8-4b82-9238-c7850c4a1b0f%2Fej7hjv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Calculate the Margin of Safety, expressed as a percentage of Sales, given the following
data:
Sales = $6,000,000.00
Variable Costs = 60% of Sales
Fixed Costs = $1,800,000.00
Break-Even Sales - $4,500,000.00
Maximum Capacity of Sales = $10,000,000.00
15.0%
18.0%
33.3%
25.0%
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