Economics · Cost Accounting
When preparing a break-even graph, what does the Margin of Safety refer to?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The point where total revenue equals total variable cost
- 2The level of sales below the break-even point
- 3The excess of actual or budgeted sales over the break-even volume of sales✓
- 4The minimum level of fixed costs required to keep the factory running
Correct answer
The excess of actual or budgeted sales over the break-even volume of sales
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