Margin of Safety problem Help needed please

lydia8283

Hi

Could someone help me with Orsborne Practice synoptic assessment 1 task 4 (b)?

I calculated the number of engineers should be based at Barnstaple for the branch to break-even is 11.

The Barnstaple manager thinks that he will be able to deploy 13 engineers during January. Then ask for percentage margin of safety.

I thought the answer is (13-11)/13 *100%
Why the answer is (13-11)/11 *100% ?

Many thanks in advance.

Vicvic

Hi,
Your calculation is correct.
Check the correction on Osborne books website

lydia8283

Vicvic said:

Hi,

Your calculation is correct.

Check the correction on Osborne books website

Hi, thank you so much. This explains...