Question

The difference between actual sales and sales at break-even point is called:

Q: Answer-The difference between actual sales and sales at break-even point is called:

Margin of Safety MOS Actual Sales Break-even Sales. It measures how much sales can drop before the firm reaches break-even. A higher MOS indicates lower business risk. Example Sales 10,00,000 BEP Sales 7,50,000 MOS 2,50,000 25.

A Contribution

B Margin of safety

C P/V ratio

D Operating leverage

E Fixed cost

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The difference between actual sales and sales at break-even point is called:

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