What Is the Result When Actual Sales Equal Break-Even Point

question 78

Multiple Choice

What is the result when actual sales equal break-even point in dollar sales?

• A) the margin of safety is positive
• B) the margin of safety is negative
• C) the margin of safety equals zero
• D) the margin of safety is negative or positive

---

Definitions:

Form 8027

A tax form used by employers who operate large food or beverage establishments to report tips received by employees.

FICA Tax

Federal Insurance Contributions Act tax, a payroll tax deducted from employees' wages for Social Security and Medicare benefits.

Employer

An individual or business entity that hires and pays wages or salaries to one or more employees in exchange for their work.

Paychecks

Documents issued by an employer to an employee to pay for services rendered, representing salary or wages.