Asked by
Stuti Agrawal
on Nov 19, 2024Verified
Fawn Company's margin of safety is $90,000. If the company's sales drop by $80,000, it will still have positive net operating income.
Margin of Safety
The difference between actual or projected sales and the break-even point, indicating the amount of sales decline a business can tolerate.
Net Operating Income
The profit generated from a business's regular operational activities, excluding expenses and taxes.
- Analyze the visual representation of cost-volume-profit analysis.
Verified Answer
AN
Learning Objectives
- Analyze the visual representation of cost-volume-profit analysis.
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