Question

The difference between the current sales revenue and the sales at the break-even point is called the a.price factor b.operating leverage c.contribution margin d.margin of safety

Answer 1

Answer:

Margin of safety

Explanation:

The difference between  at sales at break even point  and current sales revenue is known as margin of safety.

Break even analysis requires the examination and  computation of margin of safety for a company that is based on the associated costs and amount of revenue collected.

According to the accounting principles, margin of safety is known as the amount of sales or output level falls before the company reaches its break-even point.