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If a business is producing and selling more than the break - even level of output, a profit is being made and they have what
If a business is producing and selling more than the breakeven level of output, a profit is being made and they have what is known as a margin of safety, which is effectively a safety net.
The margin of safety is the number of units the business predicts to sell above their breakeven point. The formula to calculate this is sales break even output
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