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
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Solution 1
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
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