Margin of safety in dollars is
A) expected sales divided by break-even sales.
B) expected sales less break-even sales.
C) actual sales less expected sales.
D) expected sales less actual sales.

Question

Quizplus · Accepted Answer

Margin of safety in dollars is the difference between expected sales and break-even sales. Therefore, it is calculated by subtracting break-even sales from expected sales, which is option B.

Margin of Safety in Dollars Is