What Is the Margin of Safety (In Sales) When a Business

question 98

Multiple Choice

What is the margin of safety (in sales) when a business has sales of $485,000, sales of $225,000 at break-even point, and unit selling price of $55?

• A) $710,000
• B) $280,000
• C) $260,000
• D) $510,000

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, describing a five-tier model of human needs, arranged in a hierarchy that must be fulfilled sequentially from basic physiological needs to self-actualization.

Satisfied Needs

Fulfillment of wants or necessities required for an individual's well-being or contentment.

Intrapreneurship

Refers to the practice of fostering entrepreneurial behavior within a large organization, encouraging employees to innovate and pursue new ideas.

Personal Growth

The process of improving self-awareness, developing talents, and refining personal qualities to enhance the quality of life.