If M&H Ltd

Multiple Choice

If M&H Ltd.has a margin of safety of $100,000, which of the following statements is correct?

A) Sales can increase by $100,000 before M&H have an operating loss.
B) Fixed costs can increase by $100,000 before M&H have an operating loss.
C) Sales can decrease by $50,000 and fixed costs can increase by $40,000 before M&H have an operating loss.
D) Sales can increase by $50,000, and fixed costs can decrease by $50,000 before M&H have an operating loss.