1. When sales price increases and all other variables are held constant, the break-even point will ____________________.

a. increase

b. decrease

c. remain unchanged

d. produce a lower contribution margin

2. When variable costs increase and all other variables remain unchanged, the break-even point will ___________________.

a. decrease

b. remain unchanged

c. increase

d. produce a lower contribution margin

3. When fixed costs increase and all other variables remain unchanged, the contribution margin will ___________________.

a. increase

b. increase variable costs per unit

c. remain unchanged

d. decrease

4. Break-even for a multiple-product firm ____________________________.

a. can only be calculated when the proportion of products sold is the same for all products

b. can be calculated by multiplying fixed costs by the contribution margin ratio of a compostite unit

c. can be calculated by multiplying fixed costs by the contribution margin ratio of the most common product in the sales mix

d. can be calculated by dividing total fixed costs by the contribution margin of a composite unit