The margin of safety percentage is: total budgeted (or actual) sales in dollars divided by margin of safety in dollars total budgeted (or actual) sales in dollars divided by break-even sales in dollars margin of safety in dollars divided by break-even sales in dollars margin of safety in dollars divided by total budgeted (or actual) sales in dollars

Margin of safety in dollars divided by total budgeted (or actual) sales in dollars

Explanation:

The formula to compute the margin of safety is shown below:

Margin of safety = Margin of safety in dollars : total budgeted (or actual) sales in dollars

where,

The margin of safety = Total sales - break-even sales

And, the break-even sales (In dollars) = (Total fixed expenses) : (contribution margin ratio)

The contribution margin ratio = (Contribution : sales) * 100

So, the last option is correct and the rest options are wrong.