The margin of safety ratio is computed by dividing ○ actual sales by break-even sales. margin of safety in dollars by break-even sales. break-even sales by margin of safety in dollars. O margin of safety in dollars by actual sales.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 10E
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The margin of safety ratio is computed by dividing
○ actual sales by break-even sales.
margin of safety in dollars by break-even sales.
break-even sales by margin of safety in dollars.
O margin of safety in dollars by actual sales.
Transcribed Image Text:The margin of safety ratio is computed by dividing ○ actual sales by break-even sales. margin of safety in dollars by break-even sales. break-even sales by margin of safety in dollars. O margin of safety in dollars by actual sales.
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