Answer Happy

A firm has discovered that the cost of raw material will
increase.
If nothing else changes what is the effect of this on margin of
safety and break-even point?
The margin of safety will decrease and the break-even point will
increase.
The margin of safety will increase and the break-even point will
decrease.
The margin of safety will increase and the break-even point will
increase.
The margin of safety will decrease and the break-even point will
decrease.