The sales and cost data for two companies in the transportation industry are as follows:
Y Company's margin of safety in sales dollars is calculated to be:

Question

The sales and cost data for two companies in the transportation industry are as follows: 
Y Company's margin of safety in sales dollars is calculated to be:

Quizplus · Accepted Answer

Margin of safety in sales dollars = Actual or Budgeted Sales – Break-even Sales
For Y Company: 
Margin of safety = $132,857 – $115,714 
Margin of safety = $17,143. 
Therefore, the correct answer is D) $17,143.

The Sales and Cost Data for Two Companies in the Transportation