The Prentice Corporation has provided the following information pertaining to its most recent year of
$$\begin{array} { | l | r | }
\hline \text { Margin of safety } & \$ 250,000 \
\hline \text { Contribution margin ratio } & 40 \% \
\hline \text { Fixed costs } & \$ 50,000 \
\hline
\end{array}$$ How much were Prentice's total sales during the most recent year?
A) $625,000
B) $375,000
C) $500,000
D) $750,000

Question

The Prentice Corporation has provided the following information pertaining to its most recent year of
$$\begin{array} { | l | r | } 
\hline \text { Margin of safety } & \$ 250,000 \
\hline \text { Contribution margin ratio } & 40 \% \
\hline \text { Fixed costs } & \$ 50,000 \
\hline
\end{array}$$ How much were Prentice's total sales during the most recent year?
A) $625,000
B) $375,000
C) $500,000
D) $750,000

Quizplus · Accepted Answer

The Answer of The Prentice Corporation has provided the following information pertaining to its most recent year of
$$\begin{array} { | l | r | } 
\hline \text { Margin of safety } & \$ 250,000 \
\hline \text { Contribution margin ratio } & 40 \% \
\hline \text { Fixed costs } & \$ 50,000 \
\hline
\end{array}$$ How much were Prentice's total sales during the most recent year?
A) $625,000
B) $375,000
C) $500,000
D) $750,000

The Prentice Corporation Has Provided the Following Information Pertaining to Its