4. In terms of cost behavior, total variable cost in the normal academic model a. Remains the same dollar amount from period to period b. Increases proportionately to changes in the cost driver c. May change from period to priod regardless of an increase or decrease in activity d. Decreases slightly from period to period 5. You are considering the purchase of a piece of real estate. You require a 12% expected rate of retum. You expect end of year annual after tax cash flows of $(3,000) - a negative amount at the end of year 1,$16,000 annually end of years 27, and $400,000 end of year 8 . How much would you be willing to pay for the opportunity so that, if all goes as expected, you earn the 12% rate of return. 6. On a unit cost basis, as unit sales decrease within a normal operating range a. Variable costs per unit will increase b. Variable costs per unit will decrease c. Variable costs per unit will stay the same 7. The formula for the contribution margin ratio can be written as a. Total revenue minus total variable costs b. Total revenue minus total variable plus total fixed costs c. Net operating income plus total variable costs d. Total revenue minus total variable costs divided by total revenue. 4. In terms of cost behavior, total variable cost in the normal academic model a. Remains the same dollar amount from period to period b. Increases proportionately to changes in the cost driver c. May change from period to priod regardless of an increase or decrease in activity d. Decreases slightly from period to period 5. You are considering the purchase of a piece of real estate. You require a 12% expected rate of retum. You expect end of year annual after tax cash flows of $(3,000) - a negative amount at the end of year 1,$16,000 annually end of years 27, and $400,000 end of year 8 . How much would you be willing to pay for the opportunity so that, if all goes as expected, you earn the 12% rate of return. 6. On a unit cost basis, as unit sales decrease within a normal operating range a. Variable costs per unit will increase b. Variable costs per unit will decrease c. Variable costs per unit will stay the same 7. The formula for the contribution margin ratio can be written as a. Total revenue minus total variable costs b. Total revenue minus total variable plus total fixed costs c. Net operating income plus total variable costs d. Total revenue minus total variable costs divided by total revenue