Which of the following represents the formula for the margin of safety?
A)Total Fixed Costs / Unit Contribution Margin.
B)(Total Fixed Costs + Target Profit)/ Unit Contribution Margin.
C)Sales Units - Break-Even Sales Units.
D)None of the answers is correct.

Question

Quizplus · Accepted Answer

The margin of safety is calculated as the difference between actual or projected sales units and the break-even sales units, which is accurately represented by option C.

Which of the Following Represents the Formula for the Margin