Sir what is the meaning and formula of the highlighted line !!??
bhavishyaAdvanced
Leverage chapter
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You will learn about Margin of safety in Marginal Cost (Costing subject). Although, I’ll explain in brief.
It is that percentage of total sale whose contribution accounts for profit.
Formula: (Current Sales Level – Breakeven Point) / Current Sales Level x 100
Here in this sum you only need to use it to find OL.
MOS = 1/OL