12. Increases in the price of direct materials and the wages of factory workers will cause the break-even point to 13. If fixed costs are $200,000 and the unit contribution margin is $40, the sales volume in units needed to earn a target profit of $100,000 is 14. A cost-volume-profit chart is also called a(n) chart. 15. On a cost-volume-profit chart, units of sales are plotted along the axis. 16. The chart is a graphic approach to cost-volume- profit analysis that focuses on profits. 17. With computers, managers can vary assumptions regarding selling prices, costs, and volume and can see immediately the effects on the break-even point. This is known as 18. The relative distribution of sales among the various products sold by a business is called the 19. The difference between the current sales revenue and the sales at the break- even point is called the 20. is computed by dividing the contribution margin by the operating income. FILL IN THE BLANK-PART B Instructions: Answer the following questions or complete the statements by writing the appropriate words or amounts in the answer blanks. 1. Activities that are thought to cause a cost to be incurred are called activity bases or 2. vary in proportion to changes in the level of activity. 3. The salary of a factory supervisor is an example of a (fixed/variable) cost. 4. remain the same in total dollar amount as the level of activity changes. 5. The rental cost of a piece of office equipment is $2,000 per month plus $1.00 for each machine hour used over 1,500 hours. This is an example of an) cost. 6. Mixed costs are sometimes called semivariable or costs. 7. In the high-low method, the difference in total cost divided by the difference in production equals the