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Which Equation Properly Represents the Margin of Safety Ratio

Question 43

Multiple Choice

Which equation properly represents the Margin of Safety ratio?


A) Break-even Sales / Actual Sales
B) (1 - Actual Sales) / Break-even Sales
C) (1 - Break-even Sales) / Break-even Sales
D) (Actual Sales - Break-even Sales) / Actual Sales
E) None of the above

Correct Answer:

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