$1.$ If the selling price increases, the breakeven point will:

a$.$ Decrease

b$.$ Increase

c$.$ Not determinable

d$.$ Stay the same

$2.$ If a company decreases its total fixed costs and also decreases its unit variable cost, what will happen to the contribution margin and the breakeven point?

a$.$ Both the contribution margin and the breakeven point will decrease

b$.$The contribution margin will decrease, but the breakeven point will be unaffected

c$.$Both the contribution margin and the breakeven point will increase

d$.$The contribution margin will increase, and the breakeven point will decrease

e$.$The contribution margin will decrease and the breakeven point will increase

$3.$Research and development is typically viewed as a facility$-$sustaining cost

a$.$True

b$.$False

$4.$Direct materials cost is considered a unit$-$related cost

a$.$True

b$.$False

$5.$If a manufacturer$$s cost of direct materials increases, the breakeven point will:

a$.$Increase

b$.$Stay the same

c$.$Decrease

d$.$Not determinable

$6.$Selling price less variable costs equals

a$.$Gross margin

b$.$Contribution margin

c$.$Net income

d$.$Markup