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:

Perforin

A protein secreted by natural killer cells and cytotoxic T lymphocytes to kill cells by forming pores in their membranes.

Alpha Interferon

A type of protein produced by the body's immune system, used in the treatment of various infections and diseases, including some types of cancer.

Lymphotoxin

A cytokine produced by certain lymphocytes that can induce cell death and has a role in immune response.

Cytokines

Small proteins released by cells, particularly immune cells, that have a specific effect on the interactions and communications between cells.