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Explain what safety margin means

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Q1. Wagyu Beef Company has decreased its variable costs per kilogram of beef produced. However, its fixed costs increased as a result of these changes. Why might this happen and how will these changes affect the firm's break-even sales volume?

Q2. Explain what safety margin means? How can managers use this information to manage the profitability of a business?

Reference no: EM132719660

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