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If a firm's forecasted sales are $238,000 and its break-even sales are $184,000, the margin of safety in dollars is:

a.$54,000.

b.$238,000.

c.$184,000.

d.$422,000.

e.$23,400.

Respuesta :

hyderali230

Answer:

a.$54,000

Explanation:

Margin of safety is the sales value at which the business is safe from making loss. It measures the profit after the break-even point.

Forecasted Sales = $238,000

Break-even sales = $184,000

Margin of safety = Forecasted Sales - Break-even sales

Margin of safety = $238,000 - $184,000

Margin of safety = $54,000

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