Which of the following statements is true of the margin of safety?

a.It indicates the operating loss that would result due to an increase in variable cost.

b.It indicates the decrease in fixed costs necessary to achieve the target profit.

c.If the margin of safety is high, even a small decline in sales revenue may result in an operating loss.

d.If the margin of safety is low, even a small decline in sales revenue may result in an operating loss.