1.If sales volume increases, and all other factors remain unchanged, the contribution margin ratio will decrease?

True / False

2. An increase in the number of units sold will decrease a company's break- even point

True / False

3. The contribution margin ratio always increases when the:

A) break-even point increases

B) break-even point decreases

C) Variable expenses as a percentage of net sales decrease

D) Variable expense as a percentage of net sales increase.

4. A variable cost is a cost that:

A) varies per unit at every level of activity

B) occurs at various times during the year

C) varies in total in proportion to changes in the level of activity

D) may or may not be incurred, depending on management's discretion