Margin of safety is used in break-even analysis to indicate the amount of sales that are above the break-even point. In other words, the margin of safety indicates the amount by which a company's sales could decrease before the company will become unprofitable.
What is the margin of safety?
To learn more, see the Related Topics listed below:
Related TopicsBreak-even Point Improving Profits
Related Business Forms
Contribution Margin Calculations Break-even Point in Units (one product or one service) Break-even Point in Dollars (one product or one service)