10. At the break-even point: A. Sales would be equal to contribution margin. B. Contribution margin would be equal to total fixed costs. C. Sales would be equal to fixed costs. D. None of the answers are correct. 11. Mendicino Company currently produces and sells 30,000 units of product at a selling price of $12. The product has variable costs of $6 per unit and fixed costs of $40,000. The company currently earns a total contribution margin of: A. $280,000 B. $200,000 C. $240,000 D. $180,000 12. Select the incorrect statement regarding sunk costs. A. Sunk costs cannot be avoided. B. Sunk costs are relevant if they differ between the alternatives. C. Sunk costs are costs that have been incurred in past transactions. D. Sunk costs include historical costs such as equipment acquisition costs. 13. Starlight Automotive Corporation is an automobile manufacturer. The company produces its own motors, tires, and other automobile parts. Starlight has the opportunity to purchase tires from another manufacturer instead of producing them in their own facility. This type of decision is typically known as a(n): A. special order decision. B. outsourcing decision. C. segment elimination decision. D. equipment replacement decision