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16. The safety margin represents: (a) the level of activity that is necessary to reach the equilibrium point. (b) the level of activity that exists

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16. The safety margin represents: (a) the level of activity that is necessary to reach the equilibrium point. (b) the level of activity that exists before reaching the break-even point. (c) the level of activity that exists after reaching the equilibrium point. (d) It is calculated as product costs less expenses for the period. 17. Company COVID produces and sells soccer balls for $ 20.00. Total variable costs are $ 12.00 and the company reaches break even when it sells 100,000 balls. Which of the following is correct? (a) the total fixed costs are $ 800,000. (b) the total fixed costs are $ 1,200,000. (c) the marginal contribution rate is 60%. (d) the company has no fixed costs. 18. For a business that has already passed the break-even point, which of the following statements is false as a direct consequence of increasing the company's sales volume by 10% above the current level without exceeding the relevant production area? (a) Operating income (OI) will increase by 10% on this OI. (b) the total variable costs will increase by 10%. (c) the total marginal contribution will increase by 10%. (d) sales revenue will increase. 19. If in each stove that is manufactured it is necessary to install a piece with a unit cost of $ 20 and 400 stoves are manufactured, the cost of that piece is considered a material: (a) Direct and fixed. (b) Direct and variable. (c) Indirect and fixed. (d) Indirect and variable

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