The margin of safety is the point where zero profit is earned.The margin of safety is how much sales can drop before zero profit is earned.

Name: The margin of safety is the point where zero profit is earned.The margin of safety is how much sales can drop before zero profit is earned.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The margin of safety is the difference between actual sales and break-even sales, indicating how much sales can drop before reaching the break-even point, not zero profit.

The Margin of Safety Is the Point Where Zero Profit