Question

Margin of Safety The Ira Company has sales of $800,000, and the break-even point in sales dollars is $664,000. Determine the Ira company's margin of safety as a percent of current sales. %

Answer 1

17%

Step-by-step explanation:

Margin of safety = (sales - sales at break-even point ) / sales × 100 = $ 800 000 - $ 664 000 / $ 800 000 × 100 = 17%