a) Roosevelt Corporation has a weighted-average unit contribution margin of $100 for its two products, Product A and Product B. Expected sales for Roosevelt are 40,000 for Product A and 60,000 for Product B. Fixed expenses are $1,800,000. How many of Product A would Roosevelt sell at the break-even point?

b) Within the relevant range, the variable cost per unit

	A.	decreases as production increases.
	B.	increases as production increases.
	C.	remains constant at each activity level.
	D.	differs at each activity level.

c) The degree of operating leverage

	A.	is the relative proportion of mixed versus variable costs.
	B.	identifies constraints in resources to produce net income.
	C.	is a percentage in which the company sells its products.
	D.	measures how a company's net income will react to a change in sales.

d) The high-low method is used to analyze

	A.	mixed costs.
	B.	fixed costs.
	C.	conversion costs.
	D.	variable costs.

e)Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered:

Old Machine

New Machine

Price	$35,000	$60,000
Accumulated Depreciation	20,000	-0-
Remaining useful life	10 years	-0-
Useful life	-0-	10 years
Annual operating costs	$25,000	$18,000

If the old machine is replaced, it can be sold for $4,200. The net advantage of replacing the old machine is