1.As more units of a product are sold, the variable cost per unit typically

Goes up

Goes down

Remains constant

Becomes a fixed cost

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2.As more units of a product are sold, the total fixed cost typically

		Goes up
		Goes down
		Remains constant
		Becomes a variable cost

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3.

Use the following information for Boxware Corporation to answer the next three questions.

Sales price per unit	$190
Variable cost per unit	$80
Average production	1,500 units per month
Total fixed costs	$55,000 per month

What is Boxware's contribution margin per unit?

		$ 80
		$110
		$190
		$270

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4.Use the following information for Boxware Corporation to answer the next three questions.

Sales price per unit	$190
Variable cost per unit	$80
Average production	1,500 units per month
Total fixed costs	$55,000 per month

How many units per month must Boxware sell to break even?

		500
		1,000
		1,500
		2,000

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5.Use the following information for Boxware Corporation to answer the next three questions.

Sales price per unit	$190
Variable cost per unit	$80
Average production	1,500 units per month
Total fixed costs	$55,000 per month

What amount of sales in dollars must Boxware achieve each month in order to break even?

		$95,000
		$190,000
		$285,000
		$380,000