GEN COMBO MANAGERIAL ACCOUNTING FOR MANAGERS; CONNECT 1S ACCESS CARD
GEN COMBO MANAGERIAL ACCOUNTING FOR MANAGERS; CONNECT 1S ACCESS CARD
4th Edition
ISBN: 9781259911682
Author: Eric Noreen
Publisher: McGraw-Hill Education
Question
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Chapter 3, Problem 3.8E
To determine

Concept introduction:

The margin of safety indicates the amount of the sales which is earned over the breakeven level of sales. Margin of safety can be calculated in dollar amount and in units. The formulas to calculate the margin of safety are as follows:

  Margin of safety ($) = Actual Sales  Breakeven sales

  Margin of safety (%) =  (Actual Sales  Breakeven sales)Actual Sales

Requirement-1:

To calculate: the margin of safety.

To determine

Concept introduction:

The margin of safety indicates the amount of the sales which is earned over the breakeven level of sales. Margin of safety can be calculated in dollar amount and in units. The formulas to calculate the margin of safety are as follows:

  Margin of safety ($) = Actual Sales  Breakeven sales

  Margin of safety (%) =  (Actual Sales  Breakeven sales)Actual Sales

Requirement-2:

To calculate: the margin of safety %.

Blurred answer
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