Monthly Archives: October 2023

What Is Margin of Safety? Meaning, Formula, and Importance

How sensitive is your profit to changes in your costs, prices, and sales volume? By performing a sensitivity analysis, you can see how your break-even point and profit margin change when you alter your fixed costs, variable costs, selling price, or sales volume. Imagine a company, ‘TechGear’, produces a gadget with a selling price of […]

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