Workshop 5 - Quiz 5 - Explanation of margin of safety

Workshop 5 - Quiz 5 - Explanation of margin of safety -...

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You are on the right track with everything but the breakeven sales. You need to take 70,000 (FC) divided by the contribution margin ratio (42-14)/42 = .6666667 to get $105,000 in breakeven sales. So 168,000 - 105,000 = 163,000. Brandi
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Unformatted text preview: Date: 11/29/2009 9:21:46 PM From: Shay, Brandi To: Stanzel, Matthew Subject: RE: Workshop 5 - Quiz 5 Page 1 of 1 View Message 11/30/2009 https://lms.bvu.edu/Mail/view.aspx?standardInterface=1&message=4b01cc43-b05c-4d88. .....
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