Break Even Analysis

The break-even Analysis level or break-even point demonstrate the sales amount—in either unit or revenue terms—that is required to cover total costs. Profit at break-even is zero. Break-even is only possible if a firm’s accurate are higher than its variable costs per unit.

Margin of Safety (MOS)

Learning Objectives: Define and explain margin of safety. Calculate margin of safety ratio in Percentage. What is its significance/importance? Calculation of merging of safety in cost volume profit analysis Contents: Definition of Margin of Safety (MOS) Formula of MOS Example Review Problem Definition and Explanation: