What is the result when actual sales equal break-even point in dollar sales?
A) the margin of safety is positive
B) the margin of safety is negative
C) the margin of safety equals zero
D) the margin of safety is negative or positive

Question

Quizplus · Accepted Answer

When actual sales equal the break-even point in dollar sales, the margin of safety will be zero. This means that the company is neither making a profit nor incurring a loss. Any deviation from this point will result in either a positive or negative margin of safety.

What Is the Result When Actual Sales Equal Break-Even Point