Question
Select all of the following that are FALSE. Question 8 options: We can expect the margin of safety to decrease if fixed expense increase in
Select all of the following that are FALSE.
Question 8 options:
|
We can expect the margin of safety to decrease if fixed expense increase in a company (assuming all other factors remain unchanged).
|
|
A low contribution margin will result in less net income than a high contribution margin ratio at a given level of sales.
|
|
Increases in contribution margin will be reflected dollar for dollar in increased net income once the break-even point has been reached.
|
|
All manufacturing costs are deducted in the calculation of the contribution margin.
|
|
The margin of safety percentage is equal to the margin of safety in dollars divided by total sales in dollars.
|
|
An increase $15,000 in sales is required to break even if fixed expenses increase by $15,000 per year.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started