1.) The margin of safety can be expressed in all but which of the following ways?

a.In dollars of sales

b.As sales plus sales at break-even point divided by sales

c.In units of sales

d.As percent of current sales

2.) A company with a small contribution margin ratio might implement which of the following business strategies?

a.Implement a special sales campaign

b.Focus attention on reducing costs

c.Increase its advertising budget

d.Decrease its sales prices

3.) Target profit

a.equals differential costs.

b.is when sales and costs are exactly equal.

c.can be computed by modifying the break-even equation.

d.cannot be computed in cost-volume-profit analysis