The Margin of Safety in Dollars Is Calculated By

question 93

Multiple Choice

The margin of safety in dollars is calculated by:

• A) deducting the contribution margin from expected sales.
• B) deducting break-even sales from expected sales.
• C) deducting total variable cost from sales revenue.
• D) deducting total fixed costs from sales.
• E) deducting actual profit from expected profit.

---

Definitions:

Material Breach

A significant violation of a contract that goes to the essence of the agreement, giving the aggrieved party the right to terminate the contract and seek damages.

Breach

The act of infringing upon or failing to comply with a law, obligation, or any type of agreement.

Personal Assistant

An individual employed to help with daily tasks and organization, often for a business professional or executive.

Estate

The total assets owned by an individual at the time of their death, including real property, personal property, and financial assets.