EMathews, Inc. generated $200,000 in sales revenues and incurred fixed costs of $30,000. If the break-even sales is $ 140,000, what is the margin of safety ratio for Clarifex Company? a. 40% b. 75% c. 60% d. 30%

EMathews, Inc. generated $200,000 in sales revenues and incurred fixed costs of $30,000. If the break-even sales is $ 140,000, what is the margin of safety ratio for Clarifex Company? a. 40% b. 75% c. 60% d. 30%

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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Question

EMathews, Inc. generated $200,000 in sales revenues and incurred fixed costs of $30,000. If the break-even sales is $ 140,000, what is the margin of safety ratio for Clarifex Company?

a.
40%

b.
75%

c.
60%

d.
30%

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