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Mastering Margin of Safety

Test your knowledge of business financials with this quiz! Calculate the margin of safety for Bill Inc. based on the number of surfboards sold in 2021. Choose the correct answer from the options provided and see how well you understand this important financial concept.

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Questions and Answers

41.C. What was the margin of safety for Bill Inc at the end of 2021?

$215,000

41.D. How many surfboards would Bill Inc need to sell in order to achieve an after-tax net profit of $67,200 in 2022, while keeping the contribution margin and fixed costs unchanged?

5,460 Surfboards

41.E. What is the recommendation for Bill Inc's after-tax net profit in 2022, while keeping the contribution margin and fixed costs unchanged?

$67,200

Which one of these is the most correct?

<p>C) $252,000</p> Signup and view all the answers

How many surfboards would Bill Inc need to sell in order to achieve an after-tax net profit of $67,200 in 2022, while keeping the contribution margin and fixed costs unchanged?

<p>B) 5,640 Surfboards</p> Signup and view all the answers

What was the recommendation for Bill Inc's after-tax net profit in 2022, while keeping the contribution margin and fixed costs unchanged?

<p>A) $67,200</p> Signup and view all the answers

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