Unformatted text preview: operate and can be use to estimate costs and can be useful as long as the company operates within the relevant range. 15. The margin of safety is another relationship used in CVP analysis and is the difference between actual or expected sales and sales at the break-even point. The margin of safety ratio for the company is $3,000 because they expect to sell 1250 items at $12 totaling in $15,000, and the break even in only $12,000....
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This note was uploaded on 04/29/2008 for the course AC 12 taught by Professor Caster during the Spring '08 term at Fairfield.
- Spring '08
- Managerial Accounting