Gaby is planning to produce and sell baseball hats for Toby's concert. She expects to produce and sell 300 at a selling price of £8 each. Her break-even point is 213 hats. What is her margin of safety, as a percentage?

Question

Quizplus · Accepted Answer

The margin of safety is calculated as (Expected Sales - Break-even Sales) / Expected Sales * 100. Here, it is (300 - 213) / 300 * 100 = 29%.

Gaby Is Planning to Produce and Sell Baseball Hats for Toby's