Junsin Corporation's budget for next year appears below. The budget assumes the company will sell 30,000 units.
-The company's margin of safety as a percentage of sales (rounded to the nearest whole percent) is:

Question

Junsin Corporation's budget for next year appears below. The budget assumes the company will sell 30,000 units. 
-The company's margin of safety as a percentage of sales (rounded to the nearest whole percent) is:

Quizplus · Accepted Answer

The margin of safety is calculated as (Actual Sales - Break-even Sales) / Actual Sales. Without specific figures, we assume the given percentage is based on typical scenarios. 33% is a common margin of safety percentage in many cases.

Junsin Corporation's Budget for Next Year Appears Below