Determine the margin of safety expressed in dollars


Company M had fixed costs of $262,500, variable costs of $625,000, and actual sales of $1,000,000. If the company has a break-even point at $700,000 in sales revenue, determine (a) the margin of safety expressed in dollars, (b) the margin of safety expressed as a percentage of sales, (c) the contribution margin ratio, and (d) the operating income.

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Accounting Basics: Determine the margin of safety expressed in dollars
Reference No:- TGS091765

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