Examlex

Solved

A Business Had a Margin of Safety Ratio of 20

question 88

Essay

A business had a margin of safety ratio of 20%, variable costs of 75% of sales, fixed costs of $240,000, a break-even point of $960,000, and operating income of $60,000 for the current year. Calculate the current year's sales.


Definitions:

Numerical Indexes

Measures or indicators that are expressed as numbers, often used to compare and analyze data.

Mean

The arithmetic average of a set of values, calculated by summing the values and then dividing by the number of values.

Distribution

In statistics, the way in which values of a variable are spread or dispersed across a set of data.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

Related Questions