20. Which of the following statements is TRUE regarding the financial accounting income statement? a. Sales revenue is based on the units produced rather than the units sold. b. It will include a subtotal called contribution margin. c. It will group costs into categories based on their behavior (fixed versus variable). d. It is required for external reporting purposes. 21. Which of the following statements is FALSE regarding the management accounting (contribution margin) income statement? a. It will group costs into categories based on their behavior (fixed versus variable). b. It will include a subtotal called gross profit. c. It is not allowed for external reporting purposes. d. It is used by management to perform cost-volume-profit analysis. 6 22. Assuming a company has net income, which of the following statements is TRUE regarding the contribution margin per unit? a. It will decrease as the number of units sold increases. b. It will decrease as the number of units sold decreases. c. It indicates the amount that net income will increase with the sale of each additional unit. d. It indicates the amount that variable costs will decrease with the sale of each additional unit. 18. Go back to the original data, and using the other short-cut trick that you leamed, assuming that XYZ increased the sales price by 16 percent, what would the new net income be? a. $344,000 b. $324,000 c. $334,000 d. $314,000