Question 1

The following 1 total sales is 200000 2 breakeven sales is 120000 3 ttoal fixed cost 50000 given those 3 assumptions the margin of safety is

A 150000

B 80000

c 30000

d 70000

Question 2

Which of the following statments is false

A= the break even point is the level of sales at which the level sales at which the contribution margin equals total fixed costs

B sales mix refers to the relative proportions in which a companys products are sold

C= margin of safety is the excess of break-even dolalrs over the budgeted or actual dollar sales

D= operating leverage is a measure of how sensitive net operating income is to a given percentage change in dollar sales