6. Which of the following would take place if a company experienced an increase in fixed costs? A. Net income would increase. B. The break-even point would increase. C. The contribution margin would increase. D. The contribution margin would decrease. E. More than one of the above events would occur. 7. Assuming no change in sales volume, an increase in company's per-unit contribution margin would: A. increase net income. B. decrease net income. C. have no effect on net income. D. increase fixed costs. E. decrease fixed costs. 8. A company that desires to lower its break-even point should strive to: A. decrease selling prices. B. reduce variable costs. C. increase fixed costs. D. sell more units. E. purchase more than one of the above actions 9. A company has fixed costs of $900 and a per-unit contribution margin of $3. Which of the following statement is (are) true? A. Each unit "contributes" $3 toward covering the fixed costs of $900. B. The situation described is not possible and there must be an error. C. Once the break-even point is reached, the company will make money at the rate of $3 per unit. D. The firm will definitely lose money in this situation. E. Statements "A" and "C" are true. 10. Sanderson sells a single product for $50 that has a variable cost of $30. Fixed costs amount to $5 per unit when anticipated sales targets are met. If the company sells one unit in excess of its break-even volume, the bottom-line profit will be: A. $15. B. $20. C. $50. D. an amount that cannot be derived based on the information presented. E. an amount other than those in choices "A," "B," and "C" but one that can be derived based on the information presented. 11. At a volume of 20,000 units, Drees reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's contribution margin per unit is: A. $22. B. $28. C. $35. D. $37. E. an amount other than those above