Step-by-Step Lesson

Learn: Margin of Safety - How to Calculate It

Pearson Edexcel Level 1/Level 2 GCSE (9-1) in Business (1BS0)

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Steps in this lesson (11)

1
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Match the items on the left with their correct pairs on the right

2
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Match the items on the left with their correct pairs on the right

3
Multiple ChoiceInteractive

What does the margin of safety measure?

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4
article

Match the items on the left with their correct pairs on the right

5
Math EquationInteractive

A business expects sales of £12,000 and its break-even sales are £10,000. What is the margin of safety?

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6
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Match the items on the left with their correct pairs on the right

7
Fill in the BlankInteractive

A higher {{blank0}} of safety means a business can handle larger {{blank1}} in sales without making a loss.

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8
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Match the items on the left with their correct pairs on the right

9
Math EquationInteractive

If a business has a margin of safety of £1,500 and expected sales of £7,500, what is the margin of safety percentage?

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10
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Match the items on the left with their correct pairs on the right

11
Multi-SelectInteractive

Which of the following are true about margin of safety? (Select all that apply)

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