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%

---

Definitions:

Supplier Risk

The potential for negative impacts to a company's operations, profitability, or reputation resulting from its suppliers' actions or inactions.

Strategic Purchase

The acquisition of goods or services that are vital to a company's operations or strategy, often involving significant expenditure and planning.

Environmental Sustainability

The practice of using resources in a way that does not deplete them and conserves the natural environment for future generations.

Community Development

Initiatives designed to improve the living conditions, economy, and social cohesion within a specific area or community.