Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The margin of safety for a firm is $45,000, based on actual sales. This indicates that: (mark all that apply) 1.there is some level of
The margin of safety for a firm is $45,000, based on actual sales. This indicates that: (mark all that apply)
1.there is some level of cushion between the NOI for actual sales and the point where NOI equals $0.
2.the amount of actual sales over breakeven sales is positive.
3.the amount of breakeven sales over actual sales is positive.
4.Breakeven sales is $45,000.
5.The contribution margin ratio is different for the actual and breakeven sales.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started