If for an accounting period break-even sales are $250 000, actual sales are $480 000 and budgeted sales were $500 000, the margin of safety is:

Name: If for an accounting period break-even sales are $250 000, actual sales are $480 000 and budgeted sales were $500 000, the margin of safety is:
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Question

Quizplus · Accepted Answer

Margin of safety = Actual sales - Break-even sales
Margin of safety = $480,000 - $250,000
Margin of safety = $230,000

Therefore, the best choice is B.

If for an Accounting Period Break-Even Sales Are $250 000