5) Which of the following statements is TRUE with respect to total fixed costs? A) They will remain the same as production levels change. B) They will decrease as production increases. C) They will increase as production decreases. D) They will decrease as production decreases. 6) Which of the following is a characteristic of a variable cost? A) Variable costs do not change in total over the relevant range, B) All of the above are characteristics of variable costs. C) Variable costs vary in total with production and sales. D) Variable costs are variable per unit, and fixed in total. 7) Which of the following statements describes variable costs? A) They are fixed in total. B) They decrease per unit as production volume increases C) They vary per unit of output D) They are fixed per unit and vary in total 8) 8) The long distance company that you use charges $5.00 per month and $0.10 per minute per call. IF your current bill is $25.00, how many minutes did you use? A) 100 minutes B) 250 minutes C) 200 minutes D) 150 minutes 9) Jenny was reviewing the water bill for her doggy day spa and determined that her highest bill $3,000, occurred in July when she washed 2,000 dogs and her lowest bill, $2,000, occurred in November when she washed 1,000 dogs. What was the variable rate for Jenny's water bill? A) $1.00 B) $.67 C) $2.00 D) $0.50 10) 10 Jenny was reviewing the water bill for her doggy day spa and determined that her highest bill, $3,000, occurred in July when she washed 2,000 dogs and her lowest bill, $2,000, occurred in November when she washed 1,000 dogs. What was the fixed rate for Jenny's water bill? A) $1,000 B) $2,000 C) $3,000 D) $1,500 11) Canine Company produces and sells dog treats for discriminating pet owners. The unit selling price is $10, unit variable costs are $7, and total fixed costs are $3,300. How many dog treats must Canine Company sell to breakeven? A) 330 B) 194 C)1,100 D) 471 12) Fixed Company produces a single product selling for $30 per unit. Variable costs are $12 per unit and total fixed costs are $4,000. What is the contribution margin ratio? A) 1.67 B) 2.50 C) 0.60 D) 0.40