Marshall Company had actual sales of $600,000 when break-even sales were $420,000. What is the margin of safety ratio?a.25%.b.30%.c.33.33%d.45%Clear my choice

To calculate the margin of safety ratio, we need to first determine the margin of safety. The margin of safety is the difference between actual sales and break-even sales.

Margin of Safety = Actual Sales - Break-even Sales Margin of Safety = $600,000 -$420,000 Margin of Safety = $180,000

Next, we can calculate the margin of safety ratio by dividing the margin of safety by actual sales and multiplying by 100.

Margin of Safety Ratio = (Margin of Safety / Actual Sales) * 100 Margin of Safety Ratio = ($180,000 /$600,000) * 100 Margin of Safety Ratio = 30%

Therefore, the margin of safety ratio is 30%.