9. Which of the following describes the behavior of the variable cost per unit? a. varies in increasing proportion with changes in the activity level b. varies in decreasing proportion with changes in the activity level c. remains constant with changes in the activity level d. varies in direct proportion with the activity level 12. If fixed costs are $561,000 and the unit contribution margin is $8.00, what is the break-even point in the units if variable costs are decreased by $0.50 a unit? a. 66,000 b. 70,125 c. 74,800 d. 60,000 13. The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available: Unit manufacturing costs of the period: variable=$12.00 Fixed=$5.00 Unit operating expenses of the period: variable=$4.00 Fixed=$1.50 What would be the effect on income from operations if absorption costing is used rather than variable costing? a. $40,000 decrease b. $40,000 increase c. $44,000 increase d. $52,000 increase 19. Salter Inc.'s unit selling price is $50, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 5,000 units? a. $150,000 decrease b. $175,000 increase c. $75,000 increase d. $150,000 increase 20. The amount of income under absorption costing will equal the amount of income under variable costing when units manufactured: a. exceed units sold b. equal units sold c. are less than units sold d. are equal to or greater than units sold 3. Which of the following conditions would cause the break-even point to decrease? a. total fixed costs increase b. unit selling price decreases c. unit variable cost decreases d. unit variable cost increases