If M&H Ltd

question 29

Multiple Choice

If M&H Ltd.has a margin of safety of $100,000, which of the following statements is correct?

• A)Sales can increase by $100,000 before M&H have an operating loss.
• B)Fixed costs can increase by $100,000 before M&H have an operating loss.
• C)Sales can decrease by $50,000 and fixed costs can increase by $40,000 before M&H have an operating loss.
• D)Sales can increase by $50,000, and fixed costs can decrease by $50,000 before M&H have an operating loss.

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Definitions:

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