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- 4. What was the margin of safety in revenue?Which of these statements is incorrect: A. Contango occurs when the Basis, Pf – Ps is positive. B. Backwardation occurs when Ps > Pf. C. The basis is the cost of carry. D. Backwardation occurs when carrying will incur a net cost.In the cost behavior equation, b*X denotes the variable cost per unit. Select one: O True O False