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jekas [21]
3 years ago
8

Mcmurtry Corporation sells a product for $250 per unit. The product's current sales are 13,600 units and its break-even sales ar

e 10,608 units. The margin of safety as a percentage of sales is closest to:
Business
1 answer:
timofeeve [1]3 years ago
8 0

Answer:

22%

Explanation:

Margin of Safety is the amount by which sales can fall before making a loss.

Margin of Safety = Expected Sales - Break-even Sales ÷ Expected Sales

                           = (13,600 - 10,608) ÷ 13,600

                           = 0.22 or 22%

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2 years ago
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NeTakaya

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4 0
3 years ago
True or False: If a firm changes its credit policy and allows customers to pay in 90 days instead of 60 days, and everything els
Arte-miy333 [17]

Answer:

True

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3 0
3 years ago
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gulaghasi [49]

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