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% 120%. O 80% 25%
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% 120%. O 80% 25%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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%
120%.
O 80%
25%
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