Margin of safety is computed as: (a) Actual sales Break-even sales. (b) Contribution margin Fixed

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Margin of safety is computed as:

(a) Actual sales − Break-even sales.

(b) Contribution margin − Fixed costs.

(c) Break-even sales − Variable costs.

(d) Actual sales − Contribution margin.

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Financial And Managerial Accounting

ISBN: 9781118004234

1st Edition

Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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Question Posted: Feb 15, 2024 09:00 AM

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Margin of safety is computed as: (a) Actual sales Break-even sales. (b) Contribution margin Fixed

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Financial And Managerial Accounting

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