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total sales - breakeven= marginal of safety

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16y ago

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If the volume of sales is 6000000 and sales at the break-even point amount to 4800000 is the margin of safety 25?

To calculate the margin of safety, use the formula: Margin of Safety = (Actual Sales - Break-even Sales) / Actual Sales × 100%. Here, actual sales are 6,000,000 and break-even sales are 4,800,000. The margin of safety is (6,000,000 - 4,800,000) / 6,000,000 × 100% = 20%. Therefore, the margin of safety is not 25%.


What is margin of safety ratio?

Margin of safety ratio = margin of safety/sales revenue


Profit margin formula?

Contribution of margin safety x margin of safety


How do you calculate EBITDA percent Margin?

EBITDA Margin = EBITDA/Sales


How do you calculate the Actual Contribution Margin?

contribution margin = sales - variable cost


How do you calculate unit contribution margin?

sales-variable coste= contribution margin


If Hartman Co has fixed costs of 36000 and a contribution margin ration of 24 percent If expected sales are 200000 what is the margin of safety as a percent to sale?

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%


How do you calculate customer margin?

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How do you calculate the average contribution margin?

Formula for calculating average Contribution margin Average contribution margin = total contribution margin / total number of units


What is a margin of safety as well as how it can help minimize risk. Use examples in your explanation.?

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.


Calculate gross margin percentage?

Gross Profit/Net Sales = Gross Profit Margin.


Explain what a margin of safety is as well as how it can help minimize risk Use examples in your explanation?

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.