Answer:
30%
Explanation:
Given that,
Marshall Company had,
Actual sales = $600,000
Break-even sales = $420,000
Margin of Safety:
= Total sales - Sales at Break even
= $600,000 - $420,000
= $180,000
Therefore, the margin of safety ratio is as follows:
= (Margin of Safety ÷ Total sales) × 100
= ($180,000 ÷ $600,000) × 100
= 0.3 × 100
= 30%
