Elmwood Manufacturing reported sales of $2,000,000 last year (100,000 units at $20 each), when the break-even point was 80,000 units. Elmwood's margin of safety ratio is 20% O 120%. 0 80% 25%

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7BE: Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales...
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Elmwood Manufacturing reported sales of $2,000,000 last year (100,000 units at $20 each),
when the break-even point was 80,000 units. Elmwood's margin of safety ratio is
20%
O 120%.
80%
O
25%
Transcribed Image Text:Elmwood Manufacturing reported sales of $2,000,000 last year (100,000 units at $20 each), when the break-even point was 80,000 units. Elmwood's margin of safety ratio is 20% O 120%. 80% O 25%
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