Answer:
Margin of safety= $260,000
Explanation:
Giving the following information:
Sales= $485,000
Break-even point in dollars= $225,000
To calculate the break-even point in sales dollars, we need to use the following formula:
Margin of safety= (current sales level - break-even point)
Margin of safety= 485,000 - 225,000
Margin of safety= $260,000
