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21-03-2019
Business

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Calculate lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 8,000 total pens.

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21-03-2019

The Margin of Safety is the amount of sales that exceeds the break even point.

The formula as a sales number is:

Margin of Safety= Actual Sales - Break Even Point

The formula as a percentage of sales is:

Margin of Safety % = (Actual Sales- Break even point)/ Actual Sales

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