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The safety margin is the difference between budgeted ______. Multiple choice question. sales revenue and break-even sales revenue sales and budgeted variable costs at the break-even point net income and break-even net income contribution margin and fixed costs at the break-even point

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The safety margin is the difference between budgeted: A. sales revenue and break-even sales revenue.

What is a safety margin?

A safety margin can be defined as a measure of the difference between an amount of money that is budgeted by a business firm as sales revenue and break-even sales revenue.

This ultimately implies that, the difference between budgeted sales revenue and break-even sales revenue is generally referred to as a safety margin and it is very important for a business.

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