provide a measure of the amount of “cushion” against losses.

break-even sales. Th e MS is the amount that sales can drop before reaching the BEP and, thus, provides a measure of the amount of “cushion” against losses. Th e MS can be expressed in units, in dollars, or as a percentage (MS%). Th e following formulas are applicable: Margin of safety in units Actual sales in units Break-even sales in units Margin of safety in $ Actual sales in $ Break-even sales in $ Margin of safety % Margin of safety in units  Actual unit sales or MS% Margin of safety in $  Actual sales $ Th e BEP for Sesame based

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