Last year, Kiran's Party Tours had revenues of $60,000 and fixed expenses of $30,000. The only product or service offered by the business was a $15 local tour. On average, running one tour had immediate, direct costs of $5.

Next year, Kiran is expecting to sell 5,000 tours. The sale price will be kept the same, but the cost per tour and fixed expenses are expected to increase by 10%. How does Kiran's margin of safety compare between the two years? Is there any business advice you would like to give her?