Fillmore Cookery Reported Actual Sales of $2,000,000, and Fixed Costs

question 38

Essay

Fillmore Cookery reported actual sales of $2,000,000, and fixed costs of $400,000. The contribution margin ratio is 25%.
Instructions
Compute the margin of safety in dollars and the margin of safety ratio.

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Definitions:

Metatarsal

Metatarsals are the long bones in the foot that connect the ankle to the toes and play a crucial role in walking, providing support and balance.

Fibula

A long, slender bone located on the lateral side of the tibia, in the lower leg.

Trabeculae

The network of irregularly shaped plates in spongy bone tissue, providing structural support and helping to reduce the weight of the bone.

Spongy Bone

A type of bone tissue that is characterized by a honeycomb structure, consisting of trabeculae filled with bone marrow; found at the ends of long bones and in the inner layer of other bones.