Costs and cost behaviour — practice question

A business has a margin of safety of $\$10\,000$. What is the implication of this?

• AIt will break even if profit is reduced by $\$10\,000$.
• BIt will break even if sales revenue is reduced by $\$10\,000$.
• CIt will make a loss if sales revenue is reduced by $\$10\,000$.
• DIt will make a profit of $\$10\,000$.