Respond that the following statements are TRUE or FALSE:

1) In making product mix decisions under constraining factors, a company should maximize sales of the product with the highest contribution margin per unit.

2) If a product line has a negative contribution margin, the product line should probably be dropped, assuming there are no other significant considerations.

3) When a company is considering the possibility of processing their product further to achieve higher sales revenues, the rule is as follows: if incremental revenues exceed incremental costs, then further processing will enhance operational profits.

4) When a company is considering the possibility of processing their product further to achieve higher sales revenues, the rule is as follows: as long as the additional processing generates higher sales revenues, it is the preferred alternative.

5) When a company is considering the possibility of processing their product further to achieve higher sales revenues, they must carefully study the production costs needed to make the basic product before processing further in order to come to an informed decision.