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Stuti Agrawal
on Nov 19, 2024

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Fawn Company's margin of safety is $90,000. If the company's sales drop by $80,000, it will still have positive net operating income.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the amount of sales decline a business can tolerate.

Net Operating Income

The profit generated from a business's regular operational activities, excluding expenses and taxes.

  • Analyze the visual representation of cost-volume-profit analysis.
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Agustin NunezNov 22, 2024
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