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sir i have a question about margin of safety if margin of safety percentage is smaller how can be this more risky and making loss and in case of higher percentages as well please sir clarify my concept am confused !
If the margin of safety is small, then it means that only a small change in the sales will result in a problem.
If the margin of safety in high, then it will need a high change in the sales for there to be a problem.
There is therefore much more risk involved if the margin of sale involved, because only a small change will result in there being a problem.
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