iia-cia-part3-3p question 472 discussion

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Question 472

A clothing company sells shirts for $8 per shirt. In order to break even, the company must sell 25,000
shirts. Actual sales total $300,000.
What is margin of safety sales for the company?

  • A. $100,000
  • B. $200,000
  • C. $275,000
  • D. $500,000
Answer:

B

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johnyparker
1 year, 5 months ago

Correct Answer is A
Margin of Safety Sales = $300,000 - $200,000
Margin of Safety Sales = $100,000