Needles, Inc

question 91

Multiple Choice

Needles, Inc.was evaluating its margin of safety.Which one of the following is true?

• A)The break-even point is not relevant.
• B)The higher the ratio, the greater the margin of safety.
• C)The higher the dollar amount, the lower the margin of safety.
• D)The higher the ratio, the lower the fixed costs.

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Definitions:

Social Gospel

A Christian intellectual movement that emerged in the late 19th and early 20th centuries, emphasizing the application of Christian principles to social justice and economic issues.

Government Intervention

Actions taken by a government to influence or directly regulate economic, social, or political activities within its jurisdiction.

Social Classes

Divisions of a society based on social and economic status, influencing access to resources and power.

Plantations

Large agricultural estates typically found in the Americas that specialized in the cultivation of cash crops like sugar, cotton, and tobacco, often relying on slave labor.