Bolton Industries Had Actual Sales of $1000000 When Break-Even Sales

question 202

Multiple Choice

Bolton Industries had actual sales of $1000000 when break-even sales were $600000. What is the margin of safety ratio?

• A) 40%
• B) 33%
• C) 60%
• D) 67%

---

Definitions:

Psychological Contract

An unwritten agreement that sets out mutual expectations and obligations between employers and employees beyond the formal contract of employment.

Employment Relationship

The formal and informal relationship between an employer and an employee, defined by rights, responsibilities, and obligations.

Psychological Contract

An implicit agreement between an employee and employer that outlines the informal obligations and expectations of their professional relationship.

Exchange Of Values

The process where parties engage in transactions or interactions, each offering something of value to the other, aiming for mutual benefit.