Question

MC Qu. 85 Gladstone Co. has expected sales of... Gladstone Co. has expected sales of $362,000 for the upcoming month and its monthly break even sales are $345,000. What is the margin of safety as a percent of sales, rounded to the nearest whole percent

Answer 1

Margin of safety= $17,000

Step-by-step explanation:

Giving the following information:

Expected sales= $362,000

Monthly break-even sales= $345,000

To calculate the margin of safety in dollars, we need to use the following formula:

Margin of safety= (current sales level - break-even point)

Margin of safety= 362,000 - 345,000

Margin of safety= $17,000