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Which of the following would decrease margin of safety in UNITS? A. decrease in contribution margin...

Which of the following would decrease margin of safety in UNITS?

A. decrease in contribution margin %

b. Decrease in total fixed cost

C. Both

D. Neither

2.

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Answer #1

D) Neither

Following is the formula for margin of safety units

Margin of safety units= Actual sales - Breakeven sales

Decrease in contribution margin, decrease in fixed cost will not have impact

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