The sales and cost data for two companies in the transportation industry are as follows:Y Company's margin of safety (MOS) in sales dollars (rounded) is:

Question

Quizplus · Accepted Answer

To calculate the margin of safety, we need to subtract the break-even point from the actual sales revenue. For Company Y, the break-even point is calculated as $220,000/($42 - $29) = $440,000. Thus, the MOS would be $657,143 - $440,000 = $217,143. However, since we are looking for the answer in rounded dollars, the closest option is D, $17,143.

The Sales and Cost Data for Two Companies in the Transportation