The Tree Shoppe reported the following information:

Required:
Compute the margin of safety percentage at the Tree Shoppe.

Name: The Tree Shoppe reported the following information: Required: Compute the margin of safety percentage at the Tree Shoppe.
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

The Tree Shoppe reported the following information:

Required:
Compute the margin of safety percentage at the Tree Shoppe.

Quizplus · Accepted Answer

E)Step 1: Compute the margin of safety: [($10,000 - $4,000)] = $6,000
Step 2: Compute the margin of safety in units: [(35-15)] = 20 units
Step 3: Compute the margin of safety percentage: [($6,000 / $10,000)= 60%

The Tree Shoppe Reported the Following Information