Margin of safety is computed as
حفاظت کا مارجن بطور شمار کیا جاتا ہے۔
- Actual sales - break even sales
- Contribution margin - fixed costs
- Actual sales - Contribution margin
- None of these
Explanation
Margin of safety is computed as Actual sales - break even sales
The margin of safety formula is equal to current sales minus the break even point, divided by current sales.
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