Mcmurtry Corporation sells a product for $170 per unit. The product's current sales are 10,000 units and its break-even sales are 8,100 units. The margin of safety as a percentage of sales is closest to: Select one: a. 23% b. 81% c. 19% d. 77%

C. 19%

Explanation:

To get the margin of safety as a percentage of sales, we would make use of the margin of safety formula, which is expressed as;

Margin of safety = [(Current sales - Break even sales) / Current sales ] × 100

Given that;

Current sales = 10,000 units

Break even sales = 8,100 units

Margin of safety = [(10,000 - 8,100) / 10,000] × 100

Margin of safety = [ 1,900 / 10,000 ] × 100

Margin of safety = 19%

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answercompetitive advantage;