If a Business Had a Capacity of $10,000,000 of Sales

question 33

Essay

If a business had a capacity of $10,000,000 of sales, actual sales of $6,000,000, break-even sales of $4,200,000, fixed costs of $1,800,000, and variable costs of 60% of sales, what is the margin of safety expressed as a percentage of sales?

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Definitions:

Motor Skills

The abilities required in order to perform movements and tasks, involving the coordination of muscles and limbs.

Brain Activity

The complex functions and processes occurring within the brain, including neural activity and the coordination of cognitive, sensory, and motor functions.

Large Muscles

The bigger muscle groups in the body, such as the chest, back, and leg muscles, which are often the focus of strengthening exercises.

REM Sleep

A distinct phase of sleep characterized by rapid eye movements, increased brain activity, and vivid dreaming, playing a key role in learning and memory.