Answered: If Sprinkle Industries has a margin of…

If Sprinkle Industries has a margin of safety ratio of 0.60 (or 60%), it could sustain a 60 percent decline in sales before it would be operating at a loss. True False

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

If Sprinkle Industries has a margin of safety ratio of 0.60 (or 60%), it could sustain a 60 percent decline in sales before it would be operating at a loss.
OTrue
O False

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