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

Join The Discussion