Which equation properly represents the Margin of Safety ratio?

Select one:

A. (Actual Sales - Break-even Sales) / Actual Sales

B. Break-even Sales / Actual Sales

C. (1 - Actual Sales) / Break-even Sales

D. (1 - Break-even Sales) / Break-even Sales

E. None of the above

Which of the following statements is true regarding CVP analysis?

Select one:

A. CVP is only useful in a manufacturing context

B. CVP can be used with multiple products only if the product ratio is fixed and based on a weighted average unit contribution margin

C. CVP cannot be used in service industries

D. CVP is useful in all types of business and with any number of products and product mixes

E. None of the above