Economics

Margin of safety amount

Margin of safety amount is a financial measure of value, return, cost, or cash flow.

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MOS = R − Rᵦₑ

What it means

Margin of safety amount is a financial measure of value, return, cost, or cash flow.

How it works and where it is used

Use this calculation for finding break-even points, safety margins, and sales volume required for target profit.