143 The amount by which actual or expected sales exceeds bre

143.      The amount by which actual or expected sales exceeds break-even sales is referred to as

a. contribution margin.

b. unanticipated profit.

c. margin of safety.

d. target net income.

Which one is correct C or D and why ?

Solution

The amount by which actual or expected sales exceeds break-even sales is referred to as margin of safety. Margin of safety includes all sales revenue above the break-even point. So is the excess of actual/expected sales over break-even sales