1. When volume or level of production increases, fixed costs will:

a. increase per unit

b. increase in total

c. decrease in total

d. stay constant

2. Stewart Co. sells a single product. The product has a selling price of $50 per unit and variable expenses are 60% of sales. If the companys fixed expenses total $150,000 per year, then it will have a break-even point in dollars of:

a. $750,000

b. $187,500

c. $375,000

d. $3,750