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A firm has discovered that the cost of raw material will increase. If nothing else changes what is the effect of this on margin of

A firm has discovered that the cost of raw material will increase.

If nothing else changes what is the effect of this on margin of safety and break-even point?

The margin of safety will decrease and the break-even point will increase.

The margin of safety will increase and the break-even point will decrease.

The margin of safety will increase and the break-even point will increase.

The margin of safety will decrease and the break-even point will decrease.

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