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The margin of safety ratio A. is computed as actual sales divided by break-even sales. B indicates what percent decline in sales could be sustained
The margin of safety ratio
A. | is computed as actual sales divided by break-even sales. | |
B | indicates what percent decline in sales could be sustained before the company would operate at a loss. | |
C | measures the ratio of fixed costs to variable costs. | |
D | is used to determine the break-even point. |
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