Question: If Sales Volume increases and all else remains constant, why would margin of safety increase? MOS= (actual sales-BE sales)/actual sales and is actual sales increases
If Sales Volume increases and all else remains constant, why would margin of safety increase? MOS= (actual sales-BE sales)/actual sales and is actual sales increases then its also being divided by a bigger number. also why would the break even point not decrease since Contribution margin should increase since sales are increasing and as CM increases Break even point decreases?
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