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Which of the following statements is FALSE?
A. The margin of safety is the difference between the budgeted level of sales and the actual sales achieved.
B. Businesses with relatively low fixed costs compared with their variable costs are said to have low operating gearing.
C. The margin of safety indicates how much sales may decrease before a loss occurs.
D. The contribution margin per unit contributes to meeting the businesss fixed costs and, if there is any excess, it then contributes to profit.
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