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hello and welcome to this session in which we would look at the margin of safety what is the margin of safety simply put the margin of safety is the access its the additional of budgeted or actual sales above the break-even volume of sales dollars simply put we have a break-even point and whats the break-even point break-even point when your profit equal to zero it means you have no profit and no loss and below zero is a loss above zero is a profit so this is so you compute your break even at what point your sales will break even in terms of profit this is the break even so were computing is the access how much are you above your break-even point are you this much above or is it this much above or is it this much above now the further you are positively from the break-even point the better off you are now if you dont remember how to compute the break-even point which is we looked at the in the prior session this is part of your cvp cost volume profit analysis simply put to find you