Tye runs a business which sells a magazine. He has worked out the following figures

for the magazine he is going to sell. He estimates that they can sell $20,000$ magazines

a year, with a selling price of $3\mathrm{.}50$ each.

He expects the business' fixed costs to be $5000$ per annum with annual rent to be a

further $6,000.$ Raw materials and staff wages to produce all the magazines will cost

$30000$ per annum.

Calculate the expected margin of safety for the year

Answer rating: 100% (QA)

Margin of safety is a financial metric used to measure the difference between the actual sales level ... View the full answer