If a company desires to increase its safety margin, it should:
A. decrease selling prices, assuming the price change will have no effect on demand.
B. decrease the contribution margin.
C. increase fixed costs.
D. stimulate sales volume.
E. attempt to raise the break-even point.
Answer: D
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What is the term applied to the excess of net revenue from sales over the cost of merchandise sold?
A) gross profit B) income from operations C) net income D) gross sales
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A. profit and loss statement B. statement of cash flow C. owners' equity statement D. statement of retained earnings
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