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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

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%.

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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.

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True

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

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True

False

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