165k views
1 vote
he excess of expected sales over the sales level at the break-even point is known as the: Multiple Choice Sales turnover. Profit margin. Contribution margin. Relevant range. Margin of safety.

1 Answer

5 votes

Answer:

Margin of safety

Step-by-step explanation:

Margin of safety means the level at which actual sales exceeds Break even point in sales. In reality, its purpose is to protect a business again loss. It also provides a measure of how sensitive profits are, in relation to ever changing level of sales.

If a company incurs higher margin of safety, then the risk of making loss will be lower and if a company incurs lower margin of safety, the risk of making loss will be higher.

User Rajeev Singh
by
8.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.