管理会计双语人教版 Chapter 05--精选篇3565.pptVIP

The margin of safety is the excess of expected sales over breakeven sales. The margin of safety is, therefore, the “cushion” or drop in sales that the company can absorb without incurring a loss. Managers use the margin of safety to evaluate the risk of both their current operations and their plans for the future. Exercise 5-20 allows us to practice both breakeven and sensitivity analysis. Country Road Driving School charges $230 per student to prepare and administer written and behind-the-wheel driving tests. Variable costs of $70 per student include trainers’ wages, study materials, and ga