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Concord Corporation had actual sales of $800000 when break-even sales were $600000. What is the margin...

Concord Corporation had actual sales of $800000 when break-even sales were $600000. What is the margin of safety ratio?

25%

75%

67%

33%

Business   Accounting   
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Answer #1

Margin of safety ratio = [Actual sales -Breakeven sales ]/Actual sales

                            = [800000-600000]/ 800000

                            = 200000/ 800000

                            = .25 or 25%

correct option is "A"-25%

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