RKH Corporation's fixed costs total $10,000, while EMO Corporation's fixed costs total $12,000 for the same period of time. Therefore, EMO has a higher margin of safety than RKH.

Question

Quizplus · Accepted Answer

The statement does not provide enough information to determine which company has a higher margin of safety. Margin of safety depends on the level of sales and the contribution margin, which are not provided in the statement.

RKH Corporation's Fixed Costs Total $10,000, While EMO Corporation's Fixed