The amount by which actual or expected sales exceeds break-even sales is referred to as contribution margin margin of safety unanticipated profit. target net income. Question 22 Cost structure cannot be significantly changed by companies generally has little impact on profitability. refers to the relative proportion of fixed versus variable costs that a company incurs. refers to the relative proportion of operating versus nonoperating costs that a company incurs Question 19 The break-even point is where total sales equal total variable costs contribution margin equals total fixed costs total sales equal total fixed costs. total variable costs equal total fixed costs Contribution margin equals sales revenue minus variable costs. is always the same as gross profit margin. is calculated by subtracting total manufacturing costs per unit from sales revenue per unit excludes variable selling costs from its calculation