What is the excess of projected sales units or dollars over the break-even point?
A)gross profit.
B)margin of safety.
C)contribution margin.
D)gross margin.

Question

Quizplus · Accepted Answer

Margin of safety is the excess of projected sales units or dollars over the break-even point. It represents the cushion available to absorb any sales decline before the company incurs losses. A higher margin of safety indicates a more secure position for the company. The other options (A, C, D) are related to profitability measures but do not specifically relate to the excess over break-even.

What Is the Excess of Projected Sales Units or Dollars