1.Fixed cost per unit of output decreases as volume increases.

true or false

2.A company sells phone cases for $180 per unit, and variable costs are $72 per unit. The company's contribution margin per unit is $108.

true or false

3.If a company has sales of $2,500 and variable costs of $1,500, then its contribution margin ratio equals 40%.

Group starts true or false

4.A cost-volume-profit (CVP) chart can be used to find the break-even point.

true or false

5.The relevant range of operations includes extremely high and low levels of production that are unlikely to occur.

true or false

6.A company expects sales of $680,000 (8,000 units at $85 per unit). If the company's total fixed costs are $350,000 and its variable costs are $35 per unit, its margin of safety in dollars is $85,000.

true or false

7.A company expects sales of $680,000 (8,000 units at $85 per unit). If the company's total fixed costs are $350,000 and its variable costs are $35 per unit, its break-even point is 10,000 units.

Group starts true or false

8.Contribution margin per unit is the amount by which a product's unit selling price exceeds its variable cost per unit.

true or false