What Is the Formula to Calculate the Margin of Safety

question 31

Multiple Choice

What is the formula to calculate the margin of safety in dollars?

• A)expected sales - expected profit
• B)expected sales - sales at break-even
• C)costs at break-even - expected profit
• D)expected costs - costs at break-even

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Definitions:

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty or diligence.

Selective Optimization

A strategy of focusing on and optimizing key life domains for better overall functioning, often used in the context of aging.

Compensation Viewpoint

A perspective that suggests individuals may develop certain traits or behaviors as a way to compensate for or overcome disabilities or deficiencies.

Cohort Effect

A cohort refers to people born at roughly the same time, and a cohort effect refers to differences in age cohorts (e.g., people born in 1930 versus those born in 1980) as a result of unique social and historical events they have experienced.