For Kosko Company, actual sales are $1,157,000 and break-even sales are $894,100. Compute (a) the margin...

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For Kosko Company, actual sales are $1,157,000 and break-even sales are $894,100. Compute (a) the margin of safety in dollars

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Answer 1

Answer #1

a) Margin of Safety ( In Dollars) = Actual Sales - Break Even Sales

= $ 1,157,000 - $ 894,100

= $ 262,900

b)

a) Margin of Safety ( %) = (Actual Sales - Break Even Sales) / Actual Sales *100

= ($ 1,157,000 - $ 894,100) / $ 1,157,000 * 100

= $ 262,900/$ 1,157,000 * 100

= 22.72255834%

= 23%

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Answer 2

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For Kosko Company, actual sales are $1,157,000 and break-even sales are $894,100. Compute (a) the margin...