a. sales-net operation income
b. sales-(variable expenses/contribution margin)
c. sales-(fixed expenses/contribution margin ratio)
d. sales-(variable expenses + fixed expenses)
yes it can be negative.
margin of safety
low break even point
the margin of safety provided to creditors
Yes, the margin of safety can be negative, which indicates that a company's actual sales are below its break-even point. This situation suggests that the business is not generating enough revenue to cover its fixed and variable costs, which could lead to financial distress. A negative margin of safety is a cause for concern, as it highlights potential risks and the need for corrective actions to improve profitability.
Margin of safety ratio = margin of safety/sales revenue
Contribution of margin safety x margin of safety
First you need to find the break even sales. Break even sales = fixed expenses/ CM ratio Break even sales = 3600/.24 = 15,000 Then find the margin of safety dollars. margin of safety dollars = budgeted sales - break even sales margin of satefy dollars = 200,000 - 15,000 = 185,000 Then you can find the margin of safety percent Margin of safety percent = margin of safety dollars/ budgeted sales dollars margin of safey percent = 185,000/200,000 = 92.5%
Margin of safety is the difference between the intrinsic value of a stock and its market price. To have a margin of safety, one must manage one's financial needs thriftily.
total sales - breakeven= marginal of safety
Margin of safety is the difference between the intrinsic value of a stock and its market price. To have a margin of safety, one must manage one's financial needs thriftily.
Time and Space
yes it can be negative.
SSM = LD1/ED99 SSM = Standard Safety Margin LD1 = Lethal dose for 1% ED99 = Effective Dose for 99%
Suspense - 1949 Margin for Safety 3-27 was released on: USA: 27 February 1951
3.333
The margin of safety is the dose of a drug that is lethal for 1% of tested animals divided by the dose that produces the maximum effect for 99% of tested animals. The larger this ratio is, the better you toxicology data will (and thus, the safer the drug will be)