Margin of Safety, Target Profit and C/S Ratio

Flashcards • 3 cards

1 / 3

Question

What is the margin of safety?

tap to reveal answer

Answer

How far actual sales can fall before the break-even point is reached. In units: Actual sales units − BEP units As %: (Margin of safety units ÷ Actual sales units) × 100

← → to navigate • space to flip • 1 wrong • 2 got it • F fullscreen