Breakeven Analysis

6. Fixed Expenses do not change in total when there is a modest change in sales. TRUE FALSE

7. An example of a fixed expense would be a 5% sales commission. TRUE FALSE

8. Property taxes and rent are often fixed expenses. TRUE FALSE

9. Variable expenses change in total as volume changes. TRUE FALSE

10. If a company requires a profit of $30,000 (instead of breaking even), the $30,000 should be combined with the fixed expenses in order to compute the point at which the company will earn $30,000. TRUE FALSE

11. The contribution margin per unit is the selling price per unit minus the fixed expenses per unit. TRUE FALSE