350 Chapter 21 2. What term is used to describe a cost which has characteristics of both a variable and fixed cost? a. variable cost b. fixed cost c. mixed cost d. sunk cost 3. If Berkson Inc.'s costs at 150,000 units of production are $240,000 (the high point of production) and $152,500 at 80,000 units of production (the low point of production), the variable cost per unit using the high-low method of cost estimation is: a. Zero b. $1.25 c. $1.60 d. $1.91 4. Which of the following changes would have the effect of increasing the break- even point for a business? a. a decrease in fixed costs b. a decrease in unit variable cost c. a decrease in unit selling price d. none of the above 5. Which of the following costs will be classified as a fixed cost in cost-volume- profit analysis? a. direct materials b. real estate taxes c. direct labor d. supplies 6. If the contribution margin is $16 and fixed costs are $400,000, what is the break-even point in units? a. 25,000 b. 250,000 c. 400,000 d. 6,400,000 7. If sales are $300,000 and sales at the break-even point are $250,000, what is the margin of safety? a. 17% b. 20% c. 83% d. 120%