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A key reason for management to build in a margin of safety in its projections is management can assess if its targets are reasonable in
A key reason for management to build in a margin of safety in its projections is
management can assess if its targets are reasonable in order to cover fixed costs. |
| if sales do not reach the targeted number, management will not suffer the consequences. |
| variable costs may fluctuate and this will affect the break-even calculation. |
| it will show the operating profit if sales are not as expected. |
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