Label Corp

question 59

Multiple Choice

Label Corp. recorded sales of $2,235,245 for the most recent year. The company's breakeven sales point (in dollars) is $1,650,000, and its margin of safety ratio (MOS%) at the current sales level is 27%. What sales (in dollars) would be needed to increase the company's MOS% to 38%?

• A) $2,277,000.
• B) $2,661,290.
• C) $2,932,640.
• D) $3,024,050.

---

Definitions:

R Square

A statistical measure of how close the data are to the fitted regression line, reflecting the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Standard Error

A statistical concept that assesses how accurately a sample distribution reflects a population, utilizing standard deviation for this purpose.

Regression Analysis

A statistical method for modeling the relationship between a dependent variable and one or more independent variables.

Linear Parameters

The coefficients in linear models that represent the relationship between the independent variables and the dependent variable.