ECONOMICS

Detailed explanation-1: -The margin of safety is the difference between sales at breakeven and sales at a determined activity level. the activity level is represented by an activity index such as direct labor hours, units of output, or sales dollars.

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 margin of safety is the amount sales can fall before the break-even point (BEP) is reached and the business makes no profit. This calculation also tells a business how many sales it has made over its BEP.

Detailed explanation-4: -Explanation: Margin of safety: The Margin of safety is the difference between the break-even point and output is produced.

Detailed explanation-5: -Margin of safety is a principle of investing through which investors purchase securities only when their market price is below their intrinsic value. Any stock that has a current value less than intrinsic value is good to buy.