A company has the following overhead costs and activities: Estimated Overhead Expected Activity Activities and Activity Measures Cost Product V Product W Product X Machine setups (setups) $7,234.50 69 12 10 Processing customer orders (orders) $3,565.50 20 9 21 Assembling products (assembly-hours) $9,178.00 492 697 111 4. A company sells two products, one with sales of $10,000 and variable expenses of $2,500, another with sales of $46,000 and variable expenses of $15,420. Fixed expenses are $33,100. Breakeven point for the whole company is close to: A. $33,100 B. $22,900 C. $51,020 D. $48,676 5. A company that reduces the proportion of variable costs in its cost structure will: A. enjoys higher stability in profits. B. increase its profits more when the economy is good. C. have a loss more easily when the economy is bad. D. be indifferent. 6. is normally recorded on any financial statement but irrelevant in decision making which is not. A. Sunk cost B. Incremental cost C. Differential cost D. Opportunity cost