Problembuster corporation has a margin of safety percentage, Ask an Expert

Accounting

Problem:

Buster Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $300,000 and the variable expenses are 45% of sales.

Given this information, the actual profit is:

Select one:

a. $15,000

b. $55,000

c. $75,000

d. $41,250

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164312

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