Question

How does the level of projected margin of safety relate to risk level?.

Answer 1

The level of projected margin of safety is presented in the projections of the organization.

These margin of safety differs from one industry to other it make takes in case of sales and services and manufacturing of products.

These margin of safety relates to amount of sales which is before the break even point

These margin of safety means this amount of sales or income to be compulsory generated by the organization for safe survival among the creditors and competitiors and market.

This margin of safety relates to the risk level when the organization is for analysis about there survival in the market .

This margin of safety resembles the low risk and safe position in the market.

This margin of safety is just before the break even point .

This is the information regarding the margin of safety and low risk level.

Thank you.