A Relatively Low Margin of Safety Ratio (MOS%) for a Product

question 86

Multiple Choice

A relatively low margin of safety ratio (MOS%) for a product is usually an indication that the product:

• A) Is losing money.
• B) Has a high contribution margin.
• C) Is riskier than a product with a higher margin of safety ratio.
• D) Is less risky than a product with a higher margin of safety ratio.
• E) Requires heavy fixed cost to produce or sell.

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