20. Which of the following is the major assumption as to cost and revenue behavior underlying conventional cost-volume-profit calculations?

a.	variability of fixed costs.
b.	variability of unit prices and efficiency.
c.	curvilinearity of relationships.
d.	linearity of relationships.

21. A cost or revenue is _________ if the change results in a difference between alternatives.

a.	relevant
b.	differential
c.	effective
d.	strategic

22. The short-run differential costs of a product are $25. Fixed costs are $5 per unit based on 10,000 units produced during this period. The company has adequate capacity to accept a special order of 1,000 units. What is the minimum price that could be charged using the differential approach to pricing?

a.	$ 5.00
b.	$20.00
c.	$25.00
d.	$30.00

23. Sebastian Enterprises sells a product for $25 per unit and has the following costs for the product

Direct Materials	$10
Direct Labor	5
Variable Overhead	3
Fixed Overhead	2
Total	$20

The company received a special order for 100 units of the product. The order would require rental of a special tool which costs $200. What is the minimum price per unit that Sebastian Enterprises should charge for this special order if they wish to earn a $300 profit on this order? Assume there is sufficient idle capacity to accept this order.

a.	$18
b.	$20
c.	$23
d.	$25