At the break-even point,the margin of safety will be:
A)positive.
B)negative.
C)zero.
D)equal to fixed costs.

Name: At the break-even point,the margin of safety will be: A)positive. B)negative. C)zero. D)equal to fixed costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

At the break-even point, the level of sales is equal to the level of costs so there is no profit or loss. Therefore, the margin of safety (which is the excess of expected sales over the break-even sales) is zero.

At the Break-Even Point,the Margin of Safety Will Be