The difference between actual sales and breakeven point is known as
AMargin of safety
BPrice-cost margin
CContribution
DProfit
Answer:
A. Margin of safety
Read Explanation:
Margin of safety is the difference between actual sales and breakeven point. It indicates the business's ability to earn profit even if there is a reduction in output. The breakeven point is where total cost is equal to total sales and there is no profit or loss. The Margin of safety ratio is calculated using the formula (M/S) = (Sales - Break-even point sales) / Present sale.
