If the margin of safety is 0, then a. the margin of safety cannot be less than or equal to 0; it must be positive. b. the company is operating at a loss. c. the company is earning a small profit. d. the company is precisely breaking even. e. the company's total variable costs are equal to its total fixed costs.

d.the company is precisely breaking even.

Explanation:

Margin of safety is referred to current sales - Break even sales ratio to current sales as a percentage.

Basically it is quoted as follows:

Therefore, when the current sales = Break even sales then only the company will have margin of safety = 0

Thus, at 0 margin of safety the company basically is at no profit no loss situation, that is break even.

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it should be