COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
What is the Break Even Percentage if the Margin of Safety is 60%
|
|
0%
|
|
|
60%
|
|
|
40%
|
|
|
100%
|
Explanation:
Detailed explanation-1: -Margin of safety is calculated as a percentage by subtracting the breakeven point from the current sales level and dividing by the current sales level. It can also be expressed in number of units or dollar amount.
Detailed explanation-2: -To calculate your break-even percentage, divide your stop-loss by your target plus stop loss, and multiply by 100. Use the break-even percentage to determine whether your trading system provides enough winning trades to be profitable.
There is 1 question to complete.