26.A semi-variable cost:

A.	Increases and decreases directly and proportionately with changes in volume.
B.	Changes in response to a change in volume, but not proportionately.
C.	Increases if volume increases, but remains constant if volume decreases.
D.	Changes inversely in response to a change in volume.

27.Management expects total sales of $40 million, a margin of safety of $10 million, and a contribution margin ratio of 45%. Which of the following estimated amounts is not consistent with this information?

A.	Variable costs, $22 million.
B.	Fixed costs, $13.5 million.
C.	Operating income, $6 million.
D.	Break-even sales volume, $30 million.

A 45% contribution margin ratio means that:

A.	The company should contribute 45% of its operating income to qualified charities for maximum tax benefits.
B.	55% of the company's revenue is consumed by fixed and variable costs.
C.	The company's revenue has increased by 45% during the current accounting period.
D.	45% of the company's revenue is available to cover fixed costs and to contribute toward operating income.

29.If the monthly sales volume required to break even is $190,000 and monthly fixed costs are $55,900, the contribution margin ratio is closest to:

A.

29%.

B.	71%.
C.			23%.
D.		340%.

30.Millar Company produces a single product which it sells for $89 a unit. If the fixed costs of manufacturing and selling the product are $68,400 a month and the variable costs are $57 a unit, which of the below is correct?

A.	The fixed costs amount to $32 per unit at any level of output within a relevant volume range.
B.	The company will break even with a sales volume of $68,400 a month.
C.	An increase in sales volume above $68,400 a month will cause an increase in fixed costs.
D.	The contribution margin per unit of product is $32.