Elmwood Manufacturing reported sales of $2,000,000 last year (100,000 units at $20 each),when the break-even point was 80,000 units. Elmwood's margin of safety ratio is20%O 120%.80%O25%

MARGIN OF SAFETYSales Above the Break-Even Point is called Margin of Safety Sales.Margin of Safety…

Answered: Elmwood Manufacturing reported sales of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Elmwood Manufacturing reported sales of $2,000,000 last year (100,000 units at $20 each), when the break-even point was 80,000 units. Elmwood's margin of safety ratio is 20% O 120%. 0 80% 25%