ECONOMICS

Detailed explanation-1: -The margin of safety is the difference between actual sales and break-even sales, while the degree of operating leverage (DOL) shows how a company’s operating income changes after a percentage change in its sales. Corporate Finance Institute.

Detailed explanation-2: -The margin of safety is the difference between the amount of expected profitability and the break-even point. The margin of safety formula is equal to current sales minus the breakeven point, divided by current sales.

Detailed explanation-3: -The term MoS is often used in design specifications. In finance, a margin of safety is the positive difference between what an investor pays for an item and the item’s intrinsic value. To qualify as a margin of safety, the market price must be significantly below the intrinsic value.

Detailed explanation-4: -Margin of safety refers to difference between break even point and expected profitability. It is the revenue earned by a company after it pays fixed and variable costs incurred in the production of goods and services.