Financial Accounting Lunar Gear Inc. has a profit of $80,000 and a profit-volume (P/V) ratio of 32%.What is the margin of safety (MOS) in dollars?a. $250,000b. $160,000c. $400,000d. $62,500

Lunar Gear Inc. has a profit of $80,000 and a profit-volume (P/V) ratio of 32%.What is the margin of…

Answered: Lunar Gear Inc. has a profit of $80,000…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 29E

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Lunar Gear Inc. has a profit of $80,000 and a profit- volume (P/V) ratio of 32%. What is the margin of safety (MOS) in dollars? a. $250,000 b. $160,000 c. $400,000 d. $62,500