Respuesta :
Answer:
30%
Explanation:
The computation of margin of safety is given below:-
Actual Sales = $5,000,000
Break-even sales = $3,500,000
Margin of safety =Actual Sales - Break even sales
= $5,000,000 - $3,500,000
= $1,500,000
Margin of safety in percentage = Margin of safety ÷ Actual Sales × 100
= $1,500,000 ÷ $5,000,000 × 100
= 30%
Therefore for computing the Margin of safety in percentage we simply divide actual sales by margin of safety and here we will not considered Sales $8,000,000 and variable costs 60%.
Answer:
30%
Explanation:
Given that,
Sales = $8,000,000
Actual sales = $5,000,000
Break even sales = $3,500,000
Fixed cost = $1,400,000
Variable costs:
= 60% of sales
= 0.6 × $8,000,000
= $4,800,000
The margin of safety is the reduction in sales that can occur before the break-even point of a business is reached.
Margin of safety:
= Actual sales - Break even sales
= $5,000,000 - $3,500,000
= $1,500,000
Margin of safety as a percentage of sales:
= (Margin of safety ÷ Actual Sales) × 100
= ($1,500,000 ÷ $5,000,000) × 100
= 0.3 × 100
= 30%
