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Gabrielle Sackmann
on Oct 11, 2024

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Two companies with the same margin of safety in dollars will also have the same total contribution margin.

Margin of Safety

This metric calculates how much sales can decline before a business reaches its breakeven point.

Total Contribution Margin

The total amount remaining from sales revenue after all variable costs are deducted, used to cover fixed costs and profit.

  • Understand the calculation and implications of margin of safety in financial planning.
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Nadia WatsonOct 13, 2024
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