Question
Company M had fixed costs of $262,500, variable costs of $625,000, and actual sales of $1,000,000. If the company has a break-even point at $700,000
Company M had fixed costs of $262,500, variable costs of $625,000, and actual sales of $1,000,000. If the company has a break-even point at $700,000 in sales revenue, determine
(a) The margin of safety expressed in dollars
(b) The margin of safety expressed as a percentage of sales
(c) The contribution margin ratio
(d) The operating income
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A Margin of safety Actual salesbreak even sales Margin of safety 1000000700000300000 B Mar...
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
