An increase in an organization's fixed costs will result in a lower margin of safety,assuming all other costs and sales remain unchanged.

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Quizplus · Accepted Answer

This is due to an upward shift in the fixed and total cost curves relative to the revenue curve,driving the break-even point out;thereby,reducing the difference (margin of safety)between break-even and the point of actual performance.

An Increase in an Organization's Fixed Costs Will Result in a Lower