a. As the level of activity increases, variable costs per unit increases. b. As the level of activity increases, fixed costs per unit decreases c. As the level of activity increases, total fixed costs increase. d. As the level of activity increases, total variable costs remain unchanged. 15. Which of the following is true? 16. Which of the following is considered a variable cost? a. Rent for a warehouse. b. Annual Salary for the CEO c. Depreciation d. Commission based on 10% of sales. 17. The contribution margin ratio is computed as: a. b. c. d. Sales minus variable costs, divided by sales. Fixed costs plus variable costs, divided by sales. Sales minus fixed costs, divided by sales. Sales divided by variable costs. 18. In the area of cost-volume-profit analysis, the contribution margin ratio shows how much each dollar of sales contributes to: a. Variable expenses and interest charges. b. Variable expenses when production is at normal capacity c. Cover fixed costs of the business and providing operating income. d. Fixed expenses and variable expenses. QUESTIONS 19-23 ARE BASED ON THE FOLLOWING Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to S68 per unit. The fixed costs are $16,500 per month. 19. What is the contribution margin? a. $85 per unit b. $68 per unit c. $17 per unit d. $153 per unit 20. What is the monthly sales volume in dollars to break-even? a. $82,500 b. $66,500 c. $97,059 d. $77,500