11. If the sales price per unit is $70, fixed costs are $130,000, and variable costs are $40 per unit, then 5,300 units would have to be sold to achieve the desired profit is $26,000.

Group of answer choices

True

False

12.Transfer pricing can create problems if a company division can purchase inputs outside of the company at a price lower than the internal transfer price from another division.

Group of answer choices

True

False

13. If fixed costs are $24,000, variable costs are $25 per unit, and the product sells for $45, the total contribution margin at the breakeven point is $1,200.

Group of answer choices

True

False

14.When a manufacturing company uses a standard costing system, the Cost of Goods Sold should be reported on the Income Statement at standard cost amounts (as opposed to actual costs which are standard cost amounts adjusted for the closing of any variance accounts).

Group of answer choices

True

False

15.If a firm has a degree of operating leverage of 2.5 and sales next year are expected to increase by 8 percent, than the firm's income would be expected to increase by 20 percent.

Group of answer choices

True

False

16. D Company expects to operate at the $270,000 sales level next year with a sales price per unit of $18 and a variable cost per unit of $15 and total fixed costs of $36,000; its margin of safety percentage would be 25%.

Group of answer choices

True

False

17. A responsibility center whose manager is held accountable for both revenues and costs and for the resulting operating income is called a profit center.

Group of answer choices

True

False

18. A product should be processed beyond the split-off point if the incremental revenue will exceed the incremental costs incurred.

Group of answer choices

True

False