Question 12 Kate Company's margin of safety is $200,000 or 40%. What does that mean? X Selected Answer: Answers: B. The company's sales are $200,000 below the break-even point. A The company's sales are 40% above the target sales level. B. The company's sales are $200,000 below the break-even point. C. If sales decrease by less than $200,000, its income will be still positive. D. If sales increase by $10,000, its income will increase by $4,000.

Kate Company's margin of safety is $200,000 or 40%. What does that mean? 83 Selected Answer: Answers: B. The company's sales are $200,000 below the break-even point. A. The company's sales are 40% above the target sales level. B. The company's sales are $200,000 below the break-even point. C. If sales decrease by less than $200,000, its income will be still positive. D. If sales increase by $10,000, its income will increase by $4,000