If variable costs go up,and all other factors remain the same,the margin of safety will become smaller.

Name: If variable costs go up,and all other factors remain the same,the margin of safety will become smaller.
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Question

Quizplus · Accepted Answer

If variable costs go up, the break-even point will increase, which means the sales level required to cover all costs will be higher. As a result, the margin of safety, which is the amount of sales above the break-even point, will become smaller.

If Variable Costs Go Up,and All Other Factors Remain the Same,the