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

question 49

Multiple Choice

If a business had a capacity of $10,000,000 of sales,actual sales were $6,000,000,break-even sales was $4,500,000,fixed costs amounted to $1,800,000,and variable costs amounted to 60% of sales,what is the margin of safety expressed as a percentage of sales?

• A)25%
• B)18%
• C)33.3%
• D)15%

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Definitions:

Analogy

A comparison between two things, typically for the purpose of explanation or clarification.

Social-Cognitive Perspective

A theoretical perspective emphasizing the role of cognitive processes in understanding social behavior, which includes attitudes, attribution, and social learning.

Model

An organism that engages in a response that is then imitated by another organism.

Incubator

An organization or environment that supports the growth and development of startups or new ideas by providing resources, mentorship, and sometimes capital.