Asked by Angie Rivera on Apr 25, 2024
If a firm's forecasted sales are $250,000 and its break-even sales are $190,000, the margin of safety in dollars is:
A) $60,000.
B) $250,000.
C) $190,000.
D) $440,000.
E) $24,000.
Forecasted Sales
An estimate of the amount of revenue that a company expects to generate from the sale of goods or services in a future period.
- Investigate and clarify the relevance of the margin of safety and the method involved in calculating it.
Learning Objectives
- Investigate and clarify the relevance of the margin of safety and the method involved in calculating it.