8. The is the excess of sales revenue over variable costs. 9. The contribution margin ratio is also called the 10. The ratio measures the effect on operating income of an increase or decrease in sales volume. 11. The unit contribution margin is the dollars from each unit of sales available to cover and provide operating profits. 12. The is the level of operations at which a business's revenues and costs are exactly equal. 13. Increases in property tax rates will cause the break-even point to 14. Decreases in the unit selling price will cause the break-even point to 15. Increases in the unit selling price will cause the break-even point to 16. The vertical axis of a break-even chart depicts and 17. Analyzing the effects of changing selling prices, costs, and volume break-even point and profit is called "what if" analysis or the 18. The sales volume necessary to break even or to earn a target profit for a business selling two or more products depends upon the 19. If the contribution margin is $200,000 and operating income is $50,000, the operating leverage is 20. An important assumption of cost-volume-profit analysis is that total sales and total costs can be represented by MULTIPLE CHOICE Instructions: Circle the best answer for each of the following questions. 1. Which of the following statements describes fixed costs? a. costs that remain constant on a per unit basis as the activity base changes b. costs that vary in total in direct proportion to changes in the activity base C. costs that remain constant on a per unit basis, but vary in total as the activity level changes d. costs that remain constant in total dollar amount as the level of activity changes