The Margin of Safety Ratio Is Equal To

question 41

Multiple Choice

The margin of safety ratio is equal to:

• A)Net operating income percentage / Contribution margin ratio.
• B)Contribution margin / Sales.
• C)Contribution margin / Net operating income.
• D)Margin of safety / Fixed cost.

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Definitions:

Outcome

An outcome is the result or effect of an action, decision, or situation.

Primary Appraisal

The initial evaluation process where an individual assesses the significance of an event as a threat, challenge, or harm/loss.

Amygdala

A region of the brain within the temporal lobe, associated with experiencing emotions, particularly fear and aggression.

Brain

The organ located in the skull responsible for central nervous system functions, including thought, emotion, and sensory processing.