QUESTION 12 The margin of safety is: O the amount by which sales can be decreased before losses occur the amount by which costs should be decreased to generate a profit the difference between sales and target income the same as gross margin costs. QUESTION 15 BA Inc. sells a single product. 600 units were sold resulting in $5,000 of sales revenue, $3,600 of variable costs, and $1,200 of fixed if sales increase by 577,500, operating income will increase by $32,450 $31,000 $48,100 $26,565 QUESTION 16 Nate Murphy, the president of Murphy's Manufacturing Company, has asked for information about the cost behavior of manufacturing overhead costs Specifically, he wants to know how much overhead cost is fixed and how much data are the only records available: is variable. The following Month Machine-hours Overhead Costs February 1,700 $20,500 March 2,800 22,250 April 1,000 18,650 May 2,500 21,500 June 3,500 24,950 July 2,400 21,200 Using the high-low method the variable cost per machine hour is: 52.00 $4.00 $2.52 $1.60 QUESTION 20 Which of the following is true about the assumptions underlying basic CVP analysis? only selling price is known and constant only selling price and variable cost per unit are known and constant only selling price, variable cost per unit, and total fixed costs are known and constant O Selling price, variable cost per unit, fixed cost per unit, and total fixed costs are known and constant