9) The breakeven point is the volume at which A) The company has recovered all costs B) The company has recovered only the fixed costs C) The company has recovered only the variable costs D) The company has reached market saturation and can sell no more units 10) The contribution margin is A) The difference between fixed and variable costs B) The difference between the selling price and the fixed costs C) The difference between the selling price and the variable costs D) The amount the company donates per unit sold 11) The breakeven point can be reduced by A) Increasing the selling price B) Reducing the variable costs C) Reducing the fixed costs D) All of the above 12) The company can reduce its variable costs by A) Automating out some of the direct labor B) Using a lower cost material C) Both A and B D) Neither A nor B 13) A major concern of increasing the selling price is A) Sales may fall and the total volume may be less B) The company"s fixed costs will increase C) The company's cash accounts will decrease D) The company will switch to only bottled water 14) The incremental cost is A) The average cost of a unit B) The cost of producing the next unit C) The cost of producing units outside of the relevant range D) The fixed costs divided by the units produced 15) Costs will be relevant when A) They are in the future and will change with decision alternatives B) They have already been incurred and cannot be changed C) They were incurred last year D) They caused the company to lose moncy 16) Sunk costs are never relevant because A) They change between decision alternatives B) They are fixed costs C) They have already been incurred and cannot be changed D) They were incurred in error