Margin of Safety The Rachel Company has sales of $500,000, and the break-even point in sales dollars is $365,000. Determine the company's margin of safety as a percent of current sales.

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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Margin of Safety
The Rachel Company has sales of $500,000, and the break-even point in sales dollars is $365,000.
Determine the company's margin of safety as a percent of current sales.
Transcribed Image Text:Margin of Safety The Rachel Company has sales of $500,000, and the break-even point in sales dollars is $365,000. Determine the company's margin of safety as a percent of current sales.
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