Margin of safety is computed as

Review the verified answer and explanation for this SPSC – Sindh Public Service Commission past-paper question on CampusFin.

Margin of safety is computed as Answer: Actual sales - break even sales

The Margin of Safety (MOS) shows how much sales can drop before the business reaches its break-even point (where profit = 0). It measures the risk level of a company — higher MOS means greater safety against losses.

Question context

This question is part of 🌍 Current Affairs within the broader 🌐 Current Affairs & GK subject and appears in the SPSC – Sindh Public Service Commission preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.