Busıness Fınance I Deneme Sınavı Sorusu #829602

Suppose a corp. has an expected sales revenue of $820,000 and has a break-even point of $615,000. What is the margin of safety ratio for this corp.?


22%

25%

27%

30%

33%


Yanıt Açıklaması:

First we need to calculate margin of safety in dollars as:

$820,000-$615,000=$205,000

Then we need to divide it by expected sales to find margin of safety ratio as follows:

$205,000/$820,000=25%

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