Question 23 0.5 pts 3. If the contribution margin ratio is 30%, sales increase by $100,000, and fixed expenses do not change - net operating income will: Increase by $30,000 Decrease by $30,000 Increase by $300,000 Equal contribution margin Question 24 0.5 pts 4. The break-even point of a business is: The level of sales where net operating income is negative The level of sales where the contribution margin equals fixed expenses Where production and sales are equal; meaning cost of goods sold equals sales revenue The level of sales where net operating income is greater than $1 Question 25 0.5 pts 5. The margin of safety is the sales dollar amount (forecasted, budgeted, or actual) that: Equals the contribution margin Is less than the break-even point Is the same as the break-even point Exceeds the break-even point Question 26 0.5 pts 16. Higher margin businesses than lower margin businesses. Must have a higher asset utilization Can use more operating assets Must use fewer operating assets Usually use the same amount of operating assets