8a)If Vaughn Ltd. has a margin of safety of $113000, which of the following statements is correct?

	a.	Sales can increase by $113000 before Vaughn have an operating loss.
	b.	Sales can increase by $56500, and fixed costs can decrease by $56500 before Vaughn have an operating loss.
	c.	Fixed costs can increase by $113000 before Vaughn have an operating loss.
	d.	Sales can decrease by $56500 and fixed costs can increase by $45200 before Vaughn have an operating loss.

8b)

Mixed costs

	a.	none of these.
	b.	change in total in response to changes in activity level.
	c.	change in proportion to changes in activity level.
	d.	change proportionately and in total as a result of changes in activity level.

8c)

Which of the following is not true?

	a.	Mixed costs change in total, but not proportionately with the change in activity level.
	b.	An electricity bill is an example of mixed costs. The fixed portion represents the cost of having the service available and the variable cost is reflective of actual customer usage.
	c.	Mixed costs are comprised of both fixed costs and variable costs, and as a result, mixed costs increase proportionately with an increase in activity level.
	d.	Mixed costs are also known as semi-variable costs.

8d)

Which of the following would most likely be considered direct material?

	a.	lubrication for factory machines
	b.	cleaning products used in a factory
	c.	wood used to make a chair
	d.	glue used to make a chair