Question

difference between safety of margin and contribution?​

Answer 1

Answer:

In accounting, margin of safety is the extent by which actual or projected sales exceed the break-even sales.

Margin of safety ratio equals the difference between budgeted sales and break-even sales divided by budget sales.

The margin of safety is a measure of business risk

Explanation:

Contribution margin is the revenue remaining after subtracting the variable costs involved in producing a product.

• Contribution margin calculates the profitability for individual items that the company manufactures and sells.