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IIA-CIA-PART3 · Question #210

A clothing company sells shirts for $8 per shirt. In order to break even, the company must sell 25.000 shirts. Actual sales total S300.000. What is margin of safety sales for the company?

The correct answer is A. $100.000. See the full explanation below for the reasoning.

Question

A clothing company sells shirts for $8 per shirt. In order to break even, the company must sell 25.000 shirts. Actual sales total S300.000. What is margin of safety sales for the company?

Options

  • A$100.000
  • B$200,000
  • C$275,000
  • D$500,000

How the community answered

(44 responses)
  • A
    75% (33)
  • B
    2% (1)
  • C
    16% (7)
  • D
    7% (3)

Community Discussion

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