1)Unit contribution margin ratio is calculated by dividing sales price per unit by the unit contribution margin.

TRUE/FALSE

2)Which of the following will compute the break even point in sales dollars?

Fixed Costs/ Contribution margin per unit.

Fixed Costs/Contribution margin ratio

Fixed Costs/Variable Costs

Fixed Costs/Sales

None of the above

3)A term describing a firm's normal range of operating activities is:

Relevant range of operations.

Break-even level of operations.

Margin of safety of operations.

Relevant operating analysis.

High-low level of operations.

4)Divide variable cost in total by the number of units produced to get variable cost per unit.

TRUE/FALSE

5)When using the high-low method, after the variable cost is computed, you must use either the the high point or the low point to calculate the estimated fixed costs.

TRUE/FALSE