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The margin of safety ratio is calculated as actual sales divided by break-even sales. measures the ratio of fixed costs to variable costs. indicates what
The margin of safety ratio is calculated as actual sales divided by break-even sales. measures the ratio of fixed costs to variable costs. indicates what percentage decline in sales could be sustained before the company would operate at a loss. is used to determine the break-even point Step by Step Solution
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Financial and Managerial Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
11th Edition
9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895
