1. If each furnace required a hose that coats $20 and 2.000 furnaces are produced for the month. the he total cost for hoses is a. considered to be a direct fined cost. b. considered to he a direct variable cost. c. considered to he an indirect fined cost. d. considered to be an indirect variable cost. 2. If breakeven point is 100 units, each unit sells for $ 30, and fixed costs arc $1.000. then on a graph a. the total revenue line and the total cost line will intersect at $3.000 of revenue. b. the total cost line will be zero at zero units sold. c. the revenue line will start at $1.000. d. all of the above are true. 3. Palmer Inc. currently produces 110.000 units at a cost of $440,000 Next year Palmer Inc expects to produce 115.000 units Palmer's relevant range is 100.000 to 120.000 units If the cost is variable and 115,000 units arc produced, the cost. a. will stay the same b. will increase to $460,000 c. will decrease d. will be indeterminate 4. How many units would have to be sold to yield a target operating income of $22,000, assuming variable costs arc S15 per unit, total fixed costs arc $2,000, and the unit selling price is $20? a. 4.800 units b. 4, 400 units c. 4,000 units d. 3, 600 units 5. Which of the following statements about determining the breakeven point is FALSE? a. Operating income is equal to zero. b. Contribution margin - fixed costs is equal to zero, c. Revenues equal fixed costs plus variable costs. d. Breakeven revenues equal fixed costs divided by the variable cost per unit