2) Which of the following is not an assumption of cost-volume-profit analysis? A) Sales price per unit is constant. B) Total fixed costs change relative to units sold. C) Costs are linear and can accurately be divided into variable and fixed components. D) Variable costs per unit are constant.

3) Which of the following statements is false with respect to margin of safety? A) Total budgeted (or actual) sales minus sales at break-even point equals margin of safety in dollars. B) The margin of safety in dollars divided by the total budgeted (or actual) sales in dollars equals the margin of safety percentage. C) In a single product company, the margin of safety in dollars divided by the variable cost per unit equals the margin of safety in units. D) The higher the margin of safety, the lower the risk of not breaking even an incurring a loss.