The contribution margin ratio is calculated as

1. Either CM / SP or TCM / SLS
2. CM / FC
3. NI / TVC
4. TCM / NI
5. None of the above

Consider a firm that is in the profit zone. If the contribution margin ratio and fixed costs are both constant and sales dollars increase by $10,000, then net operating income will increase by

1. FC x 10,000
2. CM x 10,000
3. CM x (FC 10,000)
4. CM% x 10,000
5. None of the above

Expressed in dollars, the margin of safety is

1. SP - VC
2. (Increase in sales) x CM%
3. FC less TVC
4. Actual or budgeted sales less sales at the break-even point
5. None of the above