PART 1 Multiple Choice Questions (24 oints 1. Margin of safety refers to sales units by whach The ing in a loss. actual sales actual sales can tan below planned sales without kreeds the breakeven amourM withoAresuming Only (a) above off the above REwy Contribution margin ratio is sow M Ruw sales revenue Variable cost will 10.00000. The $7,000.00 $3,00.00 d, cannot be determined without knowing the faed eests. osssen company planning pliers su Per unn. The contrwounion margin ratio is 2s%. Gossen will breakeven at this level of sales, how much are the fixed costs? $100,000. b, $160,000 $200,000 d, $300,000 None of the above Cournot company sells 1ooooo wrenches for s12 each unit. Fixed are in the crv and net income is $200,000. What should be reported as variable expense 4. ncome statement? b. $900,000 c. $500,000 d, $1,000,000. e. None of the above 5 The margin of safety is computed as: a. Actual sales- Breakeven sales. B. Contribution margin Fixed Costs. c, Break-even Sales variable costs. d. Actual Sales Contribution Margin. 6. Sales Budget is: a. from production budget. the year. b. management's best estimate of sales revenue for c. not the starting point for the master budget. d. is prepared only for credit sales. e, none of the above