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The margin of safety is the difference between the sales and the sales at the break-even point. It is important for the company if sales
The margin of safety is the difference between the sales and the sales at the break-even point. It is important for the company if sales drop. For Ford, a higher margin of safety would mean less risk of incurring losses and influencing decisions related to risk management. This will encourage Ford to utilize strategies that increase the margin of safety, such as reducing costs or focusing on increasing sales volume
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