The difference between budgeted sales revenue and break-even sales revenue is the:
A) contribution margin.
B) contribution-margin ratio.
C) safety margin.
D) target net profit.
E) operating leverage.

Question

Quizplus · Accepted Answer

The difference between budgeted sales revenue and break-even sales revenue is known as the safety margin. This measures how much sales can drop before the company reaches its break-even point, providing a buffer against losses.

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