The Margin of Safety Is Calculated By

question 118

Multiple Choice

The margin of safety is calculated by:

• A)Dividing fixed costs plus target income by the contribution margin.
• B)Subtracting break-even income from current income.
• C)Subtracting break-even sales from current sales.
• D)Subtracting fixed costs from current contribution margin.

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Definitions:

Food

Any nutritious substance that people or animals eat or drink, or that plants absorb, in order to maintain life and growth.

Digestive System

The digestive system is the group of organs responsible for breaking down food into nutrients, which the body uses for energy, growth, and cell repair.

Scurvy

A disease caused by a deficiency of vitamin C, characterized by swollen bleeding gums, bruising, and weakness.

Vitamin C

An essential nutrient and antioxidant found in fruits and vegetables, important for the repair of tissue and the enzymatic production of certain neurotransmitters.