20060301
15-12-1
Margin of Safety
15-12 Margin of Safety
Margin of Safety lets you calculate how much sales can be reduced before losses are
incurred.
Margin of Safety Field
s
The following fields appear on the Margin of Safety calculation page.
Field
De
s
cription
SAL
Amount obtained from sales
SBE
Break-even sales (amount that must be obtained from sales to break even)
MOS
Margin of safety (portion of sales amount above break-even point)
I
Example
What is the margin of safety ([MOS]) when the sales amount ([SAL]) is $1,200,000 and the
break-even sales amount ([SBE]) is $1,000,000?
• You can calculate the break-even sales amount ([SBE]) using Break-Even Point (page
15-11-1).
• You can also calculate the sales amount ([SAL]) or break-even sales amount ([SBE]) by
inputting the other two values and tapping the button for the result you want.
Calculation Formula
s
SAL
MOS
=
SAL
–
SBE
Summary of Contents for ClassPad 330
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