18. In order to prepare the sales budget, one needs (mark all that apply)

A. the number of units expected to be sold

B. the prices expected to be charged for each unit

C. the payment terms for the company's customers

D. the number of units expected to be produced

E. the standard cost of producing one unit

F. the number of units sold in the previous period

15. There is an important relation between contribution margin and profit. Which of the following statements is not true?

A. As the number of units sold rises, profit increases by the additional contribution margin per unit.

B. As the number of units sold decreases, total contribution margin decreases, but fixed costs remain the same.

C. As the number of units sold increases, total contribution margin increases, but fixed costs remain the same.

D. As the number of units sold falls, both profit and fixed costs decline.

14. The contribution margin ratio can be used to:

A. determine an increase in fixed costs due to an increase in sales volume.

B. determine the impact of fixed costs on contribution margin.

C. estimate the behavior of fixed cost.

D. determine the increase in profits from a given dollar increase in sales revenue.