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A variable cost remains constant per unit at various levels of activity.

Both variable and fixed costs are included in calculating the contribution margin.

Manufacturing overhead is always composed of fixed costs.

Break$-$even units can be found by dividing fixed costs by the unit contribution margin.

A fixed cost remains constant in total and on a per unit basis at various levels of activity.

Unit contribution margin is the amount that each unit sold contributes towards the recovery of fixed costs and to income.

The margin of safety is the difference between sales at a determined level of activity and sales at break$-$even.

Cost$-$volume$-$profit analysis can only be performed for companies that sell only one product.

A company with low operating leverage will experience more profit volatility than a company with high operating leverage.

Unit contribution margin tells how much each additional unit sold will contribute to covering fixed costs.

Companies will always make a profit if revenues are greater than total variable costs.

Fixed cost per unit increases when activity decreases and decreases when activity increases.

Changes in the level of activity will cause both unit variable and unit fixed costs to change.

Sales mix is not important to managers when different products have substantially different contribution margins.

The contribution margin ratio is calculated as total period costs divided by total sales revenue. $F$

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