Which of the following statements is true? 1. The margin of safety is the amount by which sales can decrease before losses are incurred by the company. II. The margin of safety percentage is equal to the margin of safety in dollars divided by total contribution margin. ONeither statement is true. Only statement I is true. O Only statement II is true. Both statements are true.

Which of the following statements is true? 1. The margin of safety is the amount by which sales can decrease before losses are incurred by the company. II. The margin of safety percentage is equal to the margin of safety in dollars divided by total contribution margin. Neither statement is true. Only statement I is true. Only statement II is true. Both statements are true