Which of the Following Statements About the Safety Margin Is

question 27

Multiple Choice

Which of the following statements about the safety margin is correct?
i. All else being equal, the safety margin is higher when the break even point is lower.
Ii The safety margin depends on the budgeted revenue
Iii The safety margin is unaffected by fixed cost.

• A) i and ii
• B) i and iii
• C) ii and iii
• D) All three statements are correct

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