The Smith Corporation has the following data for 2011:
-The margin of safety expressed in sales revenue will be

Name: The Smith Corporation has the following data for 2011: -The margin of safety expressed in sales revenue will be
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Question

The Smith Corporation has the following data for 2011:  
-The margin of safety expressed in sales revenue will be

Quizplus · Accepted Answer

The margin of safety is the difference between actual sales and break-even sales. In this case, actual sales are $150,000 and break-even sales are $112,500. Therefore, the margin of safety is $150,000 - $112,500 = $37,500.

The Smith Corporation Has the Following Data for 2011