Chesterfield Corporation Has Been Operating Well Above Its Break-Even Point

question 119

Multiple Choice

Chesterfield Corporation has been operating well above its break-even point.What will happen to Chesterfield's margin of safety if the variable cost per unit increases?

• A) The break-even point would decrease, and the margin of safety would decrease.
• B) The break-even point would decrease, and the margin of safety would increase.
• C) The break-even point would increase, and the margin of safety would decrease.
• D) The break-even point would increase, and the margin of safety would increase.