(Solved): The margin of safety percentage is equal to the margin of safety in dollars divided by total sales ...

The margin of safety percentage is equal to the margin of safety in dollars divided by total sales in dollars. True or False True False If the fixed expenses increase in a company, and all other factors remain unchanged, then one would expect the margin of safety to decrease. True or False True False The break-even point in units can be obtained by dividing total fixed expenses by the contribution margin per unit. True or False True False 1:24 A company with sales of $70,000 and variable expenses of $40,000 should spend $10,000 on increased advertising if the increased advertising will increase sales by $20,000. True or False True False 31:14 At the break-even point: Sales - Variable expenses = Fixed expenses. True or False True False 31:05 k In two companies making the same product and with the same total sales and total expenses, the contribution margin ratio will tend to be lower in the company with a higher proportion of fixed expenses in its cost structure True or False True False If fixed expenses increase by $10,000 per year, then the level of sales needed to break even will also increase by $10.000. True or False True Ex False The formula for the break-even point is the same as the formula to attain a given target profit for the special case where the target profit is zero. True or False True False