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 increase, 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 increase.
D. The break-even point would decrease, and the margin of safety would decrease.
Answer: A
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