The margin of safety percentage is computed as:
A)Break-even sales $\div$ Total sales.
B)Total sales - Break-even sales.
C)(Total sales - Break-even sales)$\div$ Break-even sales.
D)(Total sales - Break-even sales)$\div$ Total sales.

Question

The margin of safety percentage is computed as:
A)Break-even sales $\div$  Total sales.
B)Total sales - Break-even sales.
C)(Total sales - Break-even sales)$\div$  Break-even sales.
D)(Total sales - Break-even sales)$\div$  Total sales.

Quizplus · Accepted Answer

The margin of safety percentage is computed by dividing the amount of sales above the break-even point by the total sales. This is expressed as (Total sales - Break-even sales)F1F1F1S1F1F1F10 Total sales, which is option D.

The Margin of Safety Percentage Is Computed As: A)Break-Even Sales ÷\div÷

The Margin of Safety Percentage Is Computed As:
A)Break-Even Sales $\div$