Pregunta
Current Attempt in Progress For Sheridan Company, actual sales are \( \$ 1,660,000 \), and break-even sales are \( \$ 1,228,400 \). (a) Compute the margin of safety in dollars. Margin of safety \( \$ \)
Ask by Spencer Ayala. in the United States
Feb 28,2025
Solución de inteligencia artificial de Upstudy
Respuesta verificada por el tutor
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The margin of safety is $431,600.
Solución
The margin of safety in dollars is the difference between actual sales and break-even sales.
Margin of Safety = Actual Sales - Break-even Sales
Margin of Safety = $1,660,000 - $1,228,400
Margin of Safety = $431,600
Thus, Sheridan Company's margin of safety is $431,600.
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Simplifique esta solución Mind Expander
The margin of safety can be calculated by subtracting break-even sales from actual sales. So, you take the actual sales of \( \$ 1,660,000 \) and subtract the break-even sales of \( \$ 1,228,400 \). Margin of safety = Actual Sales - Break-even Sales Margin of safety = \( \$ 1,660,000 - \$ 1,228,400 = \$ 431,600 \) Thus, the margin of safety is \( \$ 431,600 \). Now you've got a cushion to work with in case sales dip—just a bit of a financial insurance policy there!
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