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25 which of the folowing statements is true if the variable cot per unt increases while the sale price per unit and total fixed costs
25 which of the folowing statements is true if the variable cot per unt increases while the sale price per unit and total fixed costs remain constant? A) The breakeven point decreases. B) The contribution margin increases. C) The breakeven point remains the same D) The breakeven point increases. 26) Operating leverage predicts the effects fixed costs have on changes in operating income when A) production is discontinued B) there are no sales returns C) variable costs change D) sales volume changes 27) Bertrand Enterprises sells computer disks for $1.70 per disk. Unit variable expenses total $0.80. The breakeven point in units is 4,000 and expected sales in units are 4,500. What is the margin of safety in dollars? A) $6,800 B) $850 C) S3,600 D) $7,650 28) Which of the following statements is true of absorption costing? A) It considers variable selling and administrative costs as product costs. B) It considers fixed selling and administrative costs as product costs. C) It considers fixed manufacturing overhead cost as product costs. D) It considers variable manufacturing overhead cost as period costs. 29) Following GAAP, the income statement issued to investors and creditors must A) be prepared in the traditional format B) be prepared using variable costing C) be prepared in the contribution margin format D) show the value of contribution margin costs when determining product costs 30) Variable costing considers only A) fixed manufacturing B) variable manufacturing C) variable selling and administrative D) fixed selling and administrative
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