1.Our company sells its product for $60 per unit and has a variable cost of $30 per unit. Total fixed costs equal $20,000. What would be the breakeven point in units if the fixed costs decreased by $2,000?

a. 500

b. 600

c. 1,000

d. 1,200

2.Our company sells its product for $100 per unit and has a variable cost of $40 per unit. Total fixed costs equal $18,000. The breakeven in units is 300, and weexpect to sell 350 units. What is the margin of safety in dollars?

a.($5,000)

b. 3,000

c.($3,000)

d.$5,000

3.What are costs that do not change in total over a wide range of volume?

a.variable costs

b.fixed costs

c.mixed costs

d.relative costs

4.Fixed costs per unit will:

A.increase as volume increases

b. remain the same regardless of changes in volume

c. decrease as volume increases

d.decrease as volume decreases

5.Which of the following is a fixed cost?

a.direct materials

b.wages of production workers

c.salary of production manager

d. sales commission