1) Fixed costs per unit is inversely proportional to the volume of units produced. A) TRUE B) FALSE 2) Total variable costs change in direct proportion to changes in the volume of production. A) TRUE B) FALSE 3) Variable cost per unit is constant throughout various relevant ranges. A) TRUE B) FALSE 4) Fixed costs per unit decrease as production levels decrease. A) TRUE B) FALSE 5) During the current year, Simpson Inc. incurred $5,000 of fixed and $12,000 variable costs. If the number of units produced is halved next year, the company will incur $2,500 as fixed and $6,000 as variable costs. A) TRUE B) FALSE 6) Which of the following is a variable cost? A) Property taxes B) Salary of plant manager C) Direct materials cost D) Straight-line depreciation expense 7) A 15% increase in production volume will result in a: A) 15% increase in the variable cost per unit. B) 15% increase in total mixed costs. C) 15% increase in total administration costs. D) 15% increase in total variable costs. 8) Assume that John's cellphone service provider charges $5.00 per month and $0.10 per minute per call. If John's current bill is $50.00, how many calling minutes did John use? A) 500 minutes B) 550 minutes C) 450 minutes D) 400 minutes 9) Nancy was reviewing the water bill for her dog day care and spa and determined that her highest bill, $3,800, occurred in May when she washed 400 dogs and her lowest bill, $2,400, occurred in November when she washed 200 dogs. What was the variable cost per dog associated with Nancy's water bill? A) $6.00 B) $12.00 C) $9.50 D) $7.00 1) Fixed costs per unit is in A) TRUE B) FALSE 2) Total variable costs chan A) TRUE B) FALSE 3) Variable cost per unit is A) TRUE B) FALSE 4) Fixed costs per unit decre