ring Leverage is the measure of how sensitive net operating income is to a given percentage change in dollar sales. TRUE FALSE 7. At the break-even point, variable expenses and fixed expenses are equal. TRUE FALSE 8. The break-even point occurs where profits is zero. TRUE 9. All other things the same, a decrease in variable expense per unit will reduce the break-even point TRUE FALSE 10. Margin of safety is the excess of variable costs over fixed costs. TRUE FALSE 11. All other things the same, in periods of increasing sales, net operating income will tend to increase more rapidly in a company with high variable costs and low fixed costs than in a company with high fixed costs and low variable costs. TRUE FALSE 12. Contribution margin and Gross margin mean the same thing. TRUE FALSE 13. The variable expense per unit is $12 and the selling price per unit is $40. Then the contribution margin ratio is 70%. TRUE FALSE ...End of