The margin of safety is a positive number at the break-even point.The margin of safety will be zero at the break-even point.

Name: The margin of safety is a positive number at the break-even point.The margin of safety will be zero at the break-even point.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The margin of safety is the difference between actual sales and the break-even point. Therefore, at the break-even point, the margin of safety is zero, not a positive number.

The Margin of Safety Is a Positive Number at the Break-Even