The margin of safety percentage is computed as:
A. Break-even sales ÷ Total sales.
B. Total sales - Break-even sales.
C. (Total sales - Break-even sales) ÷ Break-even sales.
D. (Total sales - Break-even sales) ÷ Total sales.
Answer: D
The margin of safety percentage is computed as:
A. Break-even sales ÷ Total sales.
B. Total sales - Break-even sales.
C. (Total sales - Break-even sales) ÷ Break-even sales.
D. (Total sales - Break-even sales) ÷ Total sales.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.