What is the safety of margin?
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Answer / venakatesh
it is defferent between bep sasel and actual sases
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Answer / mohammedghousemohiuddin
Safety of margin the difference between actual sales and
break even sales
safety of margin = actual sales - BEP
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / rohit kasana
margin of safety= TOTAL sales-B.E.P SALES
TOATL SALESMEANS COST OF GOOD SOLD+ PROFIT OF THE FIRM
B.E.P.SALES= FIXED COST DIVIDE BY CONTRIBUTION OF MARGIN
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Answer / reni mathew
In simpler words, if a company 'X' has interest charges of
Rs 10 per annum, it should make Rs 50 as profit before tax
for its bonds to qualify as investment grade instruments.
The excess of profit after paying interest provides a sense
of comfort for investors. And this is called the 'margin of
safety.' This acts as a protection to investors against any
loss in the event of some future decline in net
profits.safety of margin is also called margin of safety.
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