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andreev551 [17]
2 years ago
7

True or false: The margin of safety is the excess of break-even sales dollars over budgeted (or actual) sales dollars.

Business
1 answer:
NikAS [45]2 years ago
6 0

TRUE.

Margin of safety is the difference between actual or budgeted sales and the volume of sales needed to break even. Costs and sales revenue are equal at the break-even point, and profit is zero. The amount of sales that can be lost before suffering losses is indicated by the margin of safety.

<h3>What do break-even sales mean?</h3>
  • The sales value at which a business makes neither a profit nor a loss is referred to as "break-even sales." In other words, a company's break-even sales are the dollar amount of revenue that exactly offsets both its fixed and variable costs.
  • Break-Even Sales = Fixed Costs / Contribution Margin Percentage

To know more about Margin of Safety check this out:brainly.com/question/13790799

#SPJ4

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<h3>What is a Joint Venture?</h3>

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