Margin of Safety

The margin of safety is the difference between the amount of expected profitability and the break-even point. The margin of safety formula is equal to current sales minus the breakeven point divided by current sales.

Click here to learn more about this topic:

Corporate,Finance,Institute,margin of safety,sales,breakeven,budgeting,investing,financial analysis,margin,profit,income statement,financial analyst,financial modeling,contribution margin,sales volume,variable costs,