Which of the following statements is false?

Multiple Choice

• Margin of safety is the excess of budgeted or actual dollar sales over the break-even dollar sales.

• Operating leverage is a measure of how sensitive fixed costs are to a given percentage change in dollar sales.

• The break-even point is the level of sales at which the total contribution margin equals the total fixed costs.

• Sales mix refers to the relative proportions in which a company's products are sold.