Margin of Safety Expressions and Computations

<p>3,000 units</p> Signup and view all the answers

<p>P600,000</p> Signup and view all the answers

<p>37.50%</p> Signup and view all the answers

<p>To anticipate profit under varying conditions</p> Signup and view all the answers

<p>Variable costing</p> Signup and view all the answers

<p>Contribution margin is used to cover fixed costs and generate profit</p> Signup and view all the answers

<p>Profit = Contribution Margin - Fixed Costs</p> Signup and view all the answers

<p>Variable costs change directly in relation to changes in sales volume</p> Signup and view all the answers

<p>The text does not mention the margin of safety or its relation to profit</p> Signup and view all the answers

<p>The proportion of margin of safety over budgeted sales</p> Signup and view all the answers

<p>Profit is directly related to the amount of margin of safety</p> Signup and view all the answers

<p>The point at which fixed and variable costs are covered by sales revenue</p> Signup and view all the answers

<p>(Selling price - Variable cost) / Number of units sold</p> Signup and view all the answers

<p>The amount above the break-even point that sales exceed</p> Signup and view all the answers

<p>(Margin of Safety / Budgeted Sales) x 100</p> Signup and view all the answers