1. A company's break-even point will not be increased by:

an increase in the number of units produced and sold.

an increase in the variable cost ratio.

a decrease in the selling price per unit.

an increase in the variable cost per unit.

2.Which of the following statements regarding special orders is (are) true?

(A) The primary decision for special orders is determining whether the differential revenue is greater than the differential costs associated with the order.

(B) The differential analysis approach to pricing for special orders could lead to underpricing in the long-run because fixed costs are notincluded in the analysis.

Neither A nor B is true.

Both A and B are true.

Only A.

Only B.