If a business had sales of $4,000,000 and a margin of safety of25%, the break-even point was
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Question:
If a business had sales of $4,000,000 and a margin of safety of25%, the break-even point was
$3,000,000
$12,000,000
$1,000,000
$5,000,000
Forde Co. has an operating leverage of 4. Sales are expected toincrease by 12% next year. Operating income is
expected to increase by 3%
unaffected
expected to increase by 4 %
expected to increase by 48%
The difference between the current sales revenue and the sales at the break-even point is called the
contribution margin
price factor
operating leverage
margin of safety
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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