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If Variable Costs Go Down,and All Other Factors Remain the Same,the

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If variable costs go down,and all other factors remain the same,the margin of safety will become larger.


Definitions:

Normally Distributed

Describes a distribution that is symmetrical, with data that clusters around a central mean and tails that decrease towards the extremes.

Standard Deviation

A measure of the amount of variability or dispersion of a set of data values, illustrating how much individual data points deviate from the mean.

Variable

Any characteristic, number, or quantity that can be measured or quantified.

Normally Distributed

Describes a distribution that follows a normal curve or bell-shaped pattern, where most of the data points are close to the mean.

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