The difference between budgeted sales revenue and break-even sales revenue is the:

Question

Quizplus · Accepted Answer

Safety margin represents the amount of sales revenue above the break-even point, which means the difference between budgeted sales revenue and break-even sales revenue is the safety margin. The contribution margin (A) is the difference between sales revenue and variable costs, the contribution-margin ratio (B) is the contribution margin as a percentage of sales, the target net profit (D) is the desired level of profit, and operating leverage (E) measures the degree of fixed costs in a company's cost structure.

The Difference Between Budgeted Sales Revenue and Break-Even Sales Revenue