If the fixed expenses increase in a company,and all other factors remain unchanged,then one would expect the margin of safety to decrease.

Name: If the fixed expenses increase in a company,and all other factors remain unchanged,then one would expect the margin of safety to decrease.
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Question

Quizplus · Accepted Answer

Margin of safety is the difference between actual sales and break-even sales. If the fixed expenses increase, the break-even point increases, and therefore the margin of safety decreases.

If the Fixed Expenses Increase in a Company,and All Other