Question
The margin of safety percentage is Blank______.
Multiple choice question.
total budgeted (or actual) sales in dollars ÷ margin of safety in dollars
total budgeted (or actual) sales in dollars ÷ break-even sales in dollars
margin of safety in dollars ÷ total budgeted (or actual) sales in dollars
margin of safety in dollars ÷ break-even sales in dollars
Multiple choice question.
total budgeted (or actual) sales in dollars ÷ margin of safety in dollars
total budgeted (or actual) sales in dollars ÷ break-even sales in dollars
margin of safety in dollars ÷ total budgeted (or actual) sales in dollars
margin of safety in dollars ÷ break-even sales in dollars
Answers
GPT-4o mini
The correct formula for calculating the margin of safety percentage is:
**margin of safety in dollars ÷ total budgeted (or actual) sales in dollars**
This option defines the margin of safety percentage correctly.
**margin of safety in dollars ÷ total budgeted (or actual) sales in dollars**
This option defines the margin of safety percentage correctly.