1. A company has total fixed costs of $360,000. Its product sells for $40 per unit and variable costs amount to $25 per unit. What is the break-even point in dollar sales?

2. A firm produces and sells a product with a contribution margin of $32 per unit. The firm is presently selling 90,000 units and earning $320,000 in profit/income. If the firm desires to increase its profit/income to $ 400,000, how many more units must it sell?

3. The decision to sell or process a product further is analyzed by identifying the incremental costs and benefits of further processing. (True/False)

4. Dividends are subtracted on the income statement as a business expense. (True/False)