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    Question

    …………… is the % by how much % can the sales

    drop down before the organisation start making losses
    A BE % Correct Answer Incorrect Answer
    B Contribution Ratio Correct Answer Incorrect Answer
    C MOS% Correct Answer Incorrect Answer
    D PV ratio Correct Answer Incorrect Answer

    Solution

    The Margin of Safety Percentage represents the percentage by which sales can drop before the organization starts incurring losses. It is a measure of the cushion or safety buffer that a company has to cover its fixed costs and still remain profitable. A higher MOS% indicates a greater level of safety in a company's operations.

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