Chapter 21, Problem 18DQ

To determine

Margin of safety is the excess of actual/ budgeted sales over break-even sales. Basically, it is the difference between actual/ budgeted sales and break-even sales.

This informs to the management the risk of loss to which a business is subjected by changes in revenue. This is very useful when there is significant risk of probability of reduction of sales.

In the question, we have to complete the blank fields and to elaborate the blank fields.