1.A variable cost is a cost that A) varies per unit at every level of activity. B) occurs at various times during the year. C) varies in total in proportion to changes in the level of activity D) may or may not be incurred, depending on management's discretion. 2. The amount by which actual or expected sales exceeds break-even sales is referred to as A) contribution margin. B) unanticipated profit. C margin of safety. D) target net income