Assuming the firm's expected sales are $264,000 in which the firm break-even sales are $197,000, the margin of safety in dollars is:$67,000.
Using this formula
Margin of safety in dollars=Expected sales-Break-even sales
Where:
Expected sales=$264,000
Break-even sales=$197,000
Let plug in the formula
Margin of safety in dollars=$264,000-$197,000
Margin of safety in dollars=$67,000
Inconclusion the margin of safety in dollars is: $67,000.
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