What is the margin of safety?
A) how much sales can fob for a business start making less than 5%
B) how much sales can fall before a business starts making a loss
C) how much sales can fall before a business makes less than 15%
D) none of the above

Respuesta :

The answer would be B, good luck

Answer:

B) how much sales can fall before a business starts making a loss

Explanation:

The margin of safety is the amount by which the sales can fall before a company gets to the break-even point that is the level in which there are no losses or profits. The margin of safety can be calculated by subtracting the break-even sales level from the expected sales level. According to this, the answer is that the margin of safety is how much sales can fall before a business starts making a loss.