grading: 333-99+1pt good luck and all the best If sales volume decreases, and all other factors remain unchanged, the 1. contribution margin ratio will decrease - t/f. 2. In two companies making the same product and with the same total sales and total expenses, the contribution margin ratio will be higher in the company with a higher proportion of fixed expenses in its cost structure. tt 3 At the break-even point, the total cont oution margin and fixed expenses are equal. t/ 4. All other things the same, an increase in total fixed expenses will increase the break-even point. t/f 5. All other things the same, a reduction in the variable expense per unit will decrease the break-even point. tf 6. All other things the same, an increase in variable expense per unit will reduce the break-even point. t/f 7. For a capital intensive, automated company the break-even point will tend to be higher and the margin of safety will be lower than for a less capital intensive company with the same sales. Uf 8. The margin of safety in dollars equals the excess of actual sales over budgeted sales. t/f 9. If two companies produce the same product and have the same total sales permed without the prior written consent of 1 000 II 000 F4 F3 F5 F6 F7 F8 F9 # $ % A & *