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Examveda

Which of the following is correct about 'Margin of Safety Ratio'?

A. $$\frac{{{\text{Capital employed}}}}{{{\text{Net worth}}}}$$

B. $$\frac{{{\text{Contribution}}}}{{{\text{Sales Volume}}}}$$

C. $$\frac{{{\text{Operating Profit}}}}{{{\text{Contribution}}}}$$

D. $$\frac{{{\text{Contribution}}}}{{{\text{Sales BEP}}}}$$

Answer: Option D


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