T F 4. Any business which operates at less than capacity will have larger fixed costs than variable costs. With variable costs, the cost per unit varies with changes in volume. sales volume is called the margin of safety. The margin of safety sales volume times the 5. F T T F 6. Ina cost-volume-profit graph, the dollar amount by which actual sales exceed break-even contribution margin ratio equals operating income. T 7. With fixed costs, the cost per unit varies with changes in volume. F