5. The contribution margin ratio measures the effect on the total contribution margin of a given change in total sales. True False 6. A company with sales of RM100,000, variable expenses of RM70,000, and fixed expenses of RM50,000 will reach its break-even point if sales are increased by RM20,000. True False 7. At the break-even point, variable expenses and fixed expenses are equal. True False 8. All other things the same, a decrease in variable expense per unit will reduce the break-even point. True False 9. An increase in the number of units sold will decrease the break-even point. True False 10. All other things equal, the margin of safety in a company with high fixed costs and low variable costs will tend to be higher than the margin of safety in a similar company that has low fixed costs and high variable costs. True False