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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Definitions:

Discontinuous Innovation

Innovations that represent a significant departure from existing practices and often create new markets or transform existing ones.

Normal Routine

Typical daily activities or procedures followed by an individual or organization.

New Patterns Of Behavior

Refers to the emergent behaviors and habits of individuals or groups, especially as seen in consumer markets or societal changes.

Brand Extension

The practice of using an established brand name to introduce a new product in a different category.