Question

Select all that apply The margin of safety is: (Check all that apply.) Multiple select question. the difference between expected sales and break-even sales divided by expected sales. the amount sales can drop before the company incurs a loss. adequate if greater than 15% to 20%. always expressed as a dollar amount (not in units or percentages).

Answer 1

Answer: • The amount sales can drop before the company incurs a loss.

• The difference between expected sales and break-even sales divided by expected sales.

Explanation:

The correct option regarding the margin of safety are that:

• The amount sales can drop before the company incurs a loss.

• The difference between expected sales and break-even sales divided by expected sales.