Can you please give answer this accounting question ? If the profit is 100,000 and the Profit volume ratio is40% then what will be the margin of safety:a. 250,000b. 40,000c. 2,500d. 400

Step 1: Introduction to the Margin of SafetyThe margin of safety refers to the excess output in…

Answered: If the profit is 100,000 and the Profit…

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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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