All other things equal, the margin of safety in a company with high fixed costs and low variable costs will tend to be higher than the margin of safety in a similar company that has low fixed costs and high variable costs.

True or false?

True

Explanation:

The margin of safety describes the difference between actual sales and break even sales,it can also be seen as the difference between the intrinsic value of a commodity and its actual market value. the higher the fixed cost with a corresponding low variable cost the higher the margin of safety a company would have with other things been equal

But the lower the fixed cost with a corresponding high variable cost the lower the margin of safety a company will have. with other things been equal

The margin of safety is used to know how profitable a commodity would be and also to measure the level at which market factors like deflation  would affect its performance in the open market

answerchemical property;

the answers are

a, b, c, & e.