company's margin of safety in pesos isP30,000; fixed costs, P90,000; sales, P200,000; and CM ratio, 60%. The7. The following are taken from Lily Company's income statement: net income.'sа. Р30,000b. P50,000с. PI50,000d. None of these.8 Refer to no. 7. The margin of safety in percentage form isa. 75%b. 40%c. 25%d. 60%e. None of these.

The margin of safety indicates how much revenue a company can afford to lose before it start…

7. The following are taken from Lily Company's income statement: net income. P30,000; fixed costs, P90,000; sales, P200,000; and CM ratio, 60%u. The company's margin of safety in pesos is а. Р30,000 b. P50,000 c. P150,000 d. None of these. 8. Refer to no. 7. The margin of safety in percentage form is а. 75% b. 40% c. 25% d. 60% e. None of these.

7. The following are taken from Lily Company's income statement: net income. P30,000; fixed costs, P90,000; sales, P200,000; and CM ratio, 60%u. The company's margin of safety in pesos is а. Р30,000 b. P50,000 c. P150,000 d. None of these. 8. Refer to no. 7. The margin of safety in percentage form is а. 75% b. 40% c. 25% d. 60% e. None of these.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7BE: Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales...

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