Chesterfield Corporation Has Been Operating Well Above Its Break-Even Point

Multiple Choice

Chesterfield Corporation has been operating well above its break-even point.What will happen to Chesterfield's margin of safety if the variable cost per unit increases?

A) The break-even point would decrease, and the margin of safety would decrease.
B) The break-even point would decrease, and the margin of safety would increase.
C) The break-even point would increase, and the margin of safety would decrease.
D) The break-even point would increase, and the margin of safety would increase.