KidNCo has an actual sales volume of 20,000 units and a breakeven volume of 4,500 units. This results with a margin of safety of 77.5%. This means that:

Question

KidNCo has an actual sales volume of 20,000 units and a breakeven volume of 4,500 units.  This results with a margin of safety of 77.5%.  This means that:

Answer

sales could drop by 77.5% from the actual sales level of 20,000 before the break even volume of sales would be reached

Answer

sales could increase by 77.5% from the actual sales level of 20,000 before the break even volume of sales would be reached.

Answer

sales could drop by 77.5% from the break even volume of sales before the actual sales level of 20,000 would be reached.

Answer

sales could drop by 22.5% from the actual sales level of 20,000 before the break even volume of sales would be reached.

Crowdly

KidNCo has an actual sales volume of 20,000 units and a breakeven volume of 4,50...

Want instant access to all verified answers on elearn.waikato.ac.nz?