Junsin Corporation's Budget for Next Year Appears Below -What Is the Company's Margin of Safety as a Percentage

question 20

Multiple Choice

Junsin Corporation's budget for next year appears below. The budget assumes the company will sell 30,000 units.
$\begin{array}{|l|r|r|}\hline \text { Sales } & & \$ 600,000 \\\hline \text { Less: expenses } & & \\\hline \text { Variable } & \$ 390,000 & \\\hline \text { Fixed } & \$ 140,000& \$ 530,000 \\\hline \text { Operating income } & & \$ 70,000 \\\hline\end{array}$


-What is the company's margin of safety as a percentage of sales,rounded to the nearest whole percent?

• A) 33%.
• B) 50%.
• C) 12%.
• D) 67%.

Understand the concept of budget deficit and its components.

Analyze the impact of government spending and subsidies on future generations.

Comprehend the relationship between national debt and GDP.

Evaluate how government deficits affect intergenerational standard of living.

---

Definitions:

Strategic Planning Team

A group of individuals from various departments within an organization responsible for developing long-term goals and strategies.

Mission Statement

Written explanation of an organization’s business intentions and aims.

Company's Objective

A set of goals or objectives that a company aims to achieve, which guide its internal strategy and decision-making processes.

Measurable

Capable of being precisely quantified or assessed, often used in the context of goals or performance indicators.