**Summarized data for Ralph Corporation:**- **Selling price:** $200 per unit- **Variable expenses:** $150 per unit- **Fixed expenses:** $1,000,000 per year- **Unit sales:** 25,000 per year---**Knowledge Check 01**What is Ralph Corporation’s margin of safety in dollars?- ☐ $4 million- ☐ $5 million- ☑ $1 million- ☐ $2.2 million---**Knowledge Check 02**What is Ralph Corporation’s margin of safety in percentage?- ☐ 20%- ☐ 100%- ☐ 80%- ☐ 50%

Margin of safety in percentage is calculated by dividing the margin of safety by the total sales.

Answered: Summarized data for Ralph Corporation:…

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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Summarized data for Ralph Corporation: Selling price Variable expenses $ 200 per unit $ 150 per unit $ 1,000,000 per year 25,000 per year Fixed expenses Unit sales