Question
Needles, Inc. was evaluating its margin of safety. Which one of the following is true? The break-even point is not relevant. The higher the ratio,
Needles, Inc. was evaluating its margin of safety. Which one of the following is true?
The break-even point is not relevant.
The higher the ratio, the greater the margin of safety.
The higher the dollar amount, the lower the margin of safety.
The higher the ratio, the lower the fixed costs.
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
18th Edition
1119790972, 9781119790976
