Henderson Co. has fixed costs of $30,000 and a contribution margin ratio of 25%. If expected sales are $200,000, what is the margin of safety as a percent of sales

Margin of safety ratio= 0.4 = 40%

Explanation:

Giving the following information:

Henderson Co. has fixed costs of $30,000 and a contribution margin ratio of 25%.

Sales= $200,000

First, we need to calculate the break-even point in dollars:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 30,000 / 0.25

Break-even point (dollars)= $120,000

Now, the margin of safety ratio:

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= (200,000 - 120,000) / 200,000

Margin of safety ratio= 0.4

answer; blank (1) hrm specialists,blank(2); line managers;

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know