27. If fixed costs increase, the break-even point in units will? 1. Increase 2. Decrease 3. Remain the same 4. Remain the same; however, contribution per unit will decrease 28. If contribution margin per unit decreases, the break-even point in units? 1. Will increase 2. Will decrease 3. Will remain the same 4. Cannot be determined from the information given 29. Firm X and Firm Y are competitors within the same industry. Firm X produces its product using large amounts of direct labor. Firm Y replaced direct labor with investment in machinery. Project sales for both firms are 15% LESS than in the prior year. Which statement regarding projected profits is TRUE? 1. Firm X will lose more profit than Firm Y 2. Firm Y will lose more profit than Firm X 3. Firm X and Firm Y will lose the same amount of profit 4. Neither Firm X nor Firm Y will lose profit 30. A company provided the following data: Sales 540,000 Variable cost 378,000 Fixed cost 120,000 Expected production and sales units 40,000 What is the break-even point in sales dollars? 1. 498,000 2. 400,000 3. 171,429 4. 112,500 5. 150,000 31. A company provided the following data: Sales 540,000 Variable cost 378,000 Fixed cost 120,000 Expected production and sales units 40,000 How much sales in dollars is necessary to generate a profit of 30,000? 1. 528,000 2. 500,000 3. 214,286 4. 100,000 5. 150,000 32. If sales remain the same and the margin of safety increases, which of the following is true? 1. The breakeven point has increased 2. The breakeven point has decreased 3. Fixed costs have increased 4. None of these is true 33. Operating leverage is the relative mix of? 1. Revenues earned and manufacturing costs 2. Fixed and variable costs 3. High-volume products 4. Manufacturing costs and period costs 5. Revenues earned and variable costs