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JKCPA
JKCPA , CPA
Category: Finance
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Experience:  Bachelors degree and CPA with Accounting experience.
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If Sales are $300,000 and sales at the break even point are

Resolved Question:

If Sales are $300,000 and sales at the break even point are $250,000, what is the margin of safety?
Submitted: 5 years ago.
Category: Finance
Expert:  JKCPA replied 5 years ago.
Hi,

Thanks for the question.

Margin of safety = (Actual sales revenue - Breakeven sales revenue) ÷ Actual sales revenue = (300,000-250,000) / 300,000 = 50,000 / 300,000 = 0.1667 = 16.67%

Hope this helps!


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