A Business Had a Margin of Safety Ratio of 20

question 88

Essay

A business had a margin of safety ratio of 20%, variable costs of 75% of sales, fixed costs of $240,000, a break-even point of $960,000, and operating income of $60,000 for the current year. Calculate the current year's sales.

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Definitions:

Organizational Behaviors

The study of how people interact within groups in a workplace setting, often used to improve organizational performance and employee well-being.

Collectivism

A cultural value that emphasizes the importance of groups and the interdependence of individuals within those groups.

Cultural Values

The core principles and ideals upon which an entire community exists, influencing behaviors, beliefs, and practices within that society.

Gender Role Orientation

The societal norms and expectations regarding the behaviors, activities, and roles considered appropriate for males and females.