1a. The fact that the CVP graph's blue line is horizontal indicates which of the following statements is true? The average fixed expense per unit increases as the sales volume increases from 0 units to 50,000 units. The total fixed expense decreases as the sales volume increases from 0 units to 50,000 units. The total fixed expense increases as the sales volume increases from 0 units to 50,000 units. The total fixed expense does not change between a sales volume of 0 units and 50,000 units. 1b. The fact that the CVP graph's purple line intersects the Y-axis (the vertical axis) at $80,000 and then slants upward as the sales volume increases indicates which of the following statements is true? The total expense is a mixed cost that equals $8.25 when the sales volume is 1 unit. The total expense is purely a fixed expense that increases as the sales volume increases. The total expense is a mixed cost that includes a fixed component and a variable component. The total expense is purely a variable expense that increases as the sales volume increases. 1c. Which of the following statements is true with respect to the intersection of the orange and blue lines? K It represents the company's break-even point, or that point where profits equal zero. It represents the sales volume where the company's total sales equal its total fixed expense. It represents the sales volume where the company's total sales equal its total variable expense. It represents the sales volume where the company's total sales equal its total expense. Amount CVP Graph Commissions Description Fixed Expense Sales Total Expense 600K 500K 400K 300K 200K 100K Insert HY OK OK 10K 20K 30K 40K 50K Sales Volume Filters Searc Filters on this Add d Filters on all Add c