14. The margin of safety is the difference between ________.
15. The managerial accountant reported the following: Fixed costs: $3,000 Target operating income: $1,500 Contribution margin percentage: 25% What will be the revenues neededto earn target operating income of $1,500?
16. The risk-return tradeoff across alternative cost structures can be measured as ________.
17. Which of the following statements is true of operating leverage?a.There is a higher possibility of net loss in a company with high operating leverage than a lower-leveraged firm.b.At any given level of sales, degree of operating leverage equals operating income divided by contribution margin.c.Operating leverage measures the risk-return tradeoff of variable costs across alternative cost structures.d.When the fixed costs increase, operating leverage will decrease.
18. Revenues – Cost of goods sold is the formula to compute ________.