The high-low method requires three observations of costs to calculate the cost formula. O True False QUESTION 2 The contribution margin income statement is only used by internal users. O True O False QUESTION 3 The least-squares regression method uses all of the available data to find the best fitting line. O True O False QUESTION 4 In the least-squares regression method, R-square tells managers how much of the variability in cost is explained by activity. O True False QUESTION 5 The break-even point is the point where zero contribution margin is earned. O True O False QUESTION 6 The contribution margin ratio is calculated as total contribution margin divided by total sales revenue. True