Small Tots toys has actual sales of $400,000 and a break-even point of $260,000. How much is its margin of safety ratio?

Group of answer choices

154%

53.8%

35%

65%

A cost that remains the same in total, but on a unit basis, changes inversely with changes in the activity level is defined as a

Group of answer choices

variable cost.

fixed cost.

mixed cost.