I asked this question this afternoon but I got a wrong answer back.The wrong answer that someone gave me was D.The correct answer is C 20% but Idk how to solve.I need a good explanation please because I want to learn.Thank you 9 The graph below shows the CVP Graph of Bernard company.Profits ($)Units (Q)4,000 units-30,000If the profit is $7,500, what is the margin of safety percentage?А.10.0%В.13.3%С.20.0%D.25.0%Е.30.0%

Answered: asked this question this afternoon but…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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I asked this question this afternoon but I got a wrong answer back.

The wrong answer that someone gave me was D.

The correct answer is C 20% but Idk how to solve.

I need a good explanation please because I want to learn.

Thank you

9 The graph below shows the CVP Graph of Bernard company.
Profits ($)
Units (Q)
4,000 units
-30,000
If the profit is $7,500, what is the margin of safety percentage?
А.
10.0%
В.
13.3%
С.
20.0%
D.
25.0%
Е.
30.0%

Expert Solution

Step 1

The gap between the anticipated level of profitability and the break-even point is known as the margin of safety. The breakeven point divided by current sales, as well as current sales, is the margin of safety calculation.

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