If the profit is 100,000 and the Profit volume ratio is 40% then what will be the margin of safety: a. 250,000 b. 40,000 c. 2,500 d. 400

Entrepreneurial Finance
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ISBN:9781337635653
Author:Leach
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Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
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Can you please give answer this accounting question ?

If the profit is 100,000 and the Profit volume ratio is
40% then what will be the margin of safety:
a. 250,000
b. 40,000
c. 2,500
d. 400
Transcribed Image Text:If the profit is 100,000 and the Profit volume ratio is 40% then what will be the margin of safety: a. 250,000 b. 40,000 c. 2,500 d. 400
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