Question
During the planning phase, management is concerned after determining that the margin of safety percentage for a new product line is very high. Which of
During the planning phase, management is concerned after determining that the margin of safety percentage for a new product line is very high.
Which of the following is the most appropriate course of action?
Group of answer choices
Management should revise downwards its sales volume forecast for this product line.
Management should abandon its plans for this new product line.
Management should revise upwards its sales volume forecast for this product line.
Management should continue with its plans for the new product line because a high margin of safety percentage is not a cause for concern.
Management should reallocate some of the new product line's fixed costs to its established product lines.
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