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.