The Following Pertains to Upton Co Upton's Margin of Safety Is: (CPA Adapted)
A) $300,000

question 154

Multiple Choice

The following pertains to Upton Co. for the year ending December 31, 2019:
$\begin{array}{llr} \text {Budgeted Sales } &\$1,000,000\\ \text { Break-even Sales } &700,000\\ \text { Budgeted Contribution Margin } &600,000\\ \text { Cash flow Break-even } &200,000\\\end{array}$

Upton's margin of safety is: (CPA adapted)

• A) $300,000.
• B) $400,000.
• C) $500,000.
• D) $800,000.

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Definitions:

Compounded Monthly

A method of calculating interest where the earned interest is added to the principal at the end of each month, resulting in interest earned on interest in subsequent months.

Calendar Quarter

A period of three consecutive months within a calendar year used for financial and business reporting.

Compounded Monthly

A method of calculating interest where interest is added to the principal balance of an investment or loan once a month.

Future Value

The value of an investment or asset at a specified date in the future, taking into account factors such as interest rates or earnings.