Margin of Safety

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Can someone please throw some light on the concept of “Margin of Safety” by Benjamin Graham and David Dodd?

Suveer Sachdeva Financial Analyst Asked on December 13, 2014 in Funds.
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Margin of Safety = Actual Sales – Breakeven Sales

Priyanka Gupta Accountant Answered on December 13, 2014.
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Margin of safety is used in break-even analysis to indicate the amount of Sales that are above the break-even point. In other words, the margin of safety indicates the amount by which a company’s sales could decrease before the company will become unprofitable.

Raj Accountant Answered on December 13, 2014.
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Yes, you are right.

CA Ritika Mittal Accountant Answered on December 13, 2014.
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Margin of safety is the extent by which actual or projected sales exceed the break-even sales. It may be calculated simply as the difference between actual or projected sales and the break-even sales.

Margin of Safety = Budgeted Sales − Break-even Sales

pooja Trainee Answered on December 17, 2014.
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