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the following information relates to snowbird corporation: sales at the break-even point $351,000 total fixed expenses $260,000 net operating income $140,000 what is snowbird's margin of safety?

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Snowbird Corporation's margin of safety is $141,000.

Margin of safety is the difference between actual sales and sales at the break-even point. It measures how much sales can decline before the company starts incurring losses.

To calculate margin of safety, subtract the break-even sales from actual sales:

Margin of safety = Actual sales - Break-even sales

The break-even sales can be calculated by adding total fixed expenses to the net operating income:

Break-even sales = Total fixed expenses / Contribution margin ratio

Since the contribution margin ratio is not given in the problem, we can use an alternative formula to calculate break-even sales:

Break-even sales = Sales at the break-even point

Plugging in the values from the problem, we get:

Break-even sales = $351,000

Margin of safety = $351,000 - $260,000 = $91,000

Therefore, Snowbird Corporation's margin of safety is $141,000.
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