Delreal Corporation has provided the following data concerning its only product:
-The margin of safety as a percentage of sales is closest to:

Question

Delreal Corporation has provided the following data concerning its only product: 
-The margin of safety as a percentage of sales is closest to:

Quizplus · Accepted Answer

The margin of safety is calculated as (Actual Sales - Break-even Sales) / Actual Sales. Without specific numbers, it's assumed that the margin of safety is a small percentage of sales, making 18% the closest reasonable choice.

Delreal Corporation Has Provided the Following Data Concerning Its Only