How might the calculation of the margin of safety be used for decision-making during a period of economic downturn, accounting homework help
A company’s margin of safety is defined
by the sales volume and dollars which exceed its breakeven point. The
degree of operating leverage is defined by the contribution margin
divided by operating income. For this discussion:How might the calculation of the margin of safety be used for decision-making during a period of economic downturn?
How might the degree of operating leverage be used for decision-making during a period of economic downturn?
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