A company with a break-even point at $900,000 in sales revenue and had fixed costs of $225,000.

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A company with a break-even point at $900,000 in sales revenue and had fixed costs of $225,000. When actual sales were $1,000,000 variable costs were $750,000.

Determine the margin of safety expressed in dollars:

a. $1,000,000

b. $900,000

c. $100,000

d. $225,000

Related Book For answer-question

Management Accounting Information for Decision-Making and Strategy Execution

ISBN: 978-0137024971

6th Edition

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

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Posted Date: Jan 13, 2021 05:23 AM

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A company with a break-even point at $900,000 in sales revenue and had fixed costs of $225,000.

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Management Accounting Information for Decision-Making and Strategy Execution

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