The Margin of Safety Is the Difference Between Contribution Margin

question 198

True/False

The margin of safety is the difference between contribution margin and fixed costs.

---

Definitions:

Diamond Ring

A diamond ring is a piece of jewelry that features diamond(s) set into a band, commonly given to signify engagement or other important personal milestones.

Acts of God

Natural catastrophic events, such as earthquakes, floods, or hurricanes, that cannot be anticipated or controlled, often used in legal contexts to excuse parties from contractual obligations.

Wildfires

Uncontrolled and often widespread fires in areas of combustible vegetation, often exacerbated by dry conditions and strong winds.

Unexpected Detours

Situations or incidents that cause one to deviate from a planned or expected route or course of action.