1.

The current sales are $350,000 and break-even units are 10,000 at a price of $25 per unit. What is the margin of safety?

Group of answer choices

$100,000

$250,000

$ 25,000

$ 50,000

2.

A fixed cost would be:

Group of answer choices

shown as a line sloping upward to the right on a graph showing total production costs vertically and units produced horizontally.

sales commissions.

the plant manager's salary.

direct materials.

3.

If fixed costs are $48,000 and the contribution margin ratio is 40% for a product that sells for $20, what is the break-even point in units?

Group of answer choices

12,000

8,333

6,000

5,000

4.

The amount of variable cost per unit remains constant as the production level changes; the amount of fixed cost per unit changes inversely with the production level.

Group of answer choices

True

False

5.

In a cost-volume-profit chart, the intersection of the total cost line with the sales line indicates the break-even point.

Group of answer choices

True

False