Question

Mcmurtry corporation sells a product for $180 per unit. the product's current sales are 12,900 units and its break-even sales are 11,094 units. the margin of safety as a percentage of sales is closest to:

Answer 1

14%

Margin of Safety:

[(current sales - break even)/current sales] * 100

(12900-11094)/12900] *100

(1806/12900)*100

.14*100 = 14%