ACCT.PRINCIPLES-WILEYPLUS NEXTGEN
ACCT.PRINCIPLES-WILEYPLUS NEXTGEN
14th Edition
ISBN: 9781119709954
Author: Weygandt
Publisher: WILEY
Question
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Chapter 22, Problem 11BE

(a)

To determine

Margin of Safety: Margin of safety is the surplus or excess amount of expected sales over breakeven sales.

Break-Even Sales: It is the point of sales at which a company earns zero profit as cost incurred in production is equal to the total revenue.

To determine: The margin of safety in dollars.

(b)

To determine

The margin of safety ratio.

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