Question: Identify the correct statement below as it relates to the margin of safety: Multiple Choice The margin of safety calculation can be expressed in units,

Identify the correct statement below as it relates to the margin of safety: Multiple Choice The margin of safety calculation can be expressed in units, in Sales dollars, as a percentage, as a fixed amount that does not change as sales change, and as a mixed cost value. The margin of safety is useful to management because it calculates by how much sales units have to increase for management to go from a loss position, to a profit position. The margin of safety represents the amount that Sales can drop before an organization meets its break-even point. The margin of safety in Sales dollars can be calculated without calculating the break-even point in Sales dollars
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
