The Margin of Safety Percentage Is Computed As

question 20

Multiple Choice

The margin of safety percentage is computed as:

• A) Break-even sales ÷ Total sales.
• B) Total sales - Break-even sales.
• C) (Total sales - Break-even sales) ÷ Break-even sales.
• D) (Total sales - Break-even sales) ÷ Total sales.

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Definitions:

Illusory Contract

A contract that appears to be binding but does not actually commit one or more parties to an actionable obligation.

Defame

To damage someone's reputation through false or unjustified statements.

Preexisting Obligation

An obligation that already exists before a certain action is taken or an agreement is made, often relevant in contract law.

Under Seal

denotes a formal legal process or document that has been officially sealed, indicating confidentiality or authenticity.