Margin of safety is computed as

حفاظت کا مارجن بطور شمار کیا جاتا ہے۔

Actual sales - break even sales

Contribution margin - fixed costs

Actual sales - Contribution margin

None of these

Margin of safety is computed as Actual sales - break even sales

The margin of safety formula is equal to current sales minus the break even point, divided by current sales.