carty ahigh level of fixed coss relative to variable costs are considered to have eosts relasive to fised cents compenies with a high level of variable costs relative to fAxed coes rak than same level of d. Either a gak as companies with a bigh level of variable costs relative to lixed costs 14 Contributice margin is the amount A or lesser risk, depending on product costs relasive to peried conts . That is available to first cover fixed costs, then provide a profia b. Of fixed costs c.or total variable costs and total fixed costs. of Sales less cost of goods sold. 1. The formula for converting desired net income ite operating income is a. Desired net income times the income tax rate. b. Desired net income divided by (1+ tax rate). e Desire net income divided by the income tax rate. d. Desired net income divided by (1-tax rate). A16. Which of the following is not inchuded in the profit equation? a. Fixed costs b. Variable costs c. Sales revenue d. Ending Inventory A 17. As volume changes, which of the following items do not change? ar Total dollars of fixed costs b. Total dollars of contribution margin c. Total dollars of sales revenue d. Total dollars of variable coss 18. All other things equal, an increase in the number of units sold will a. Increase fixed cost per unit. b. Increase total dollars of contribution margin. e Decrease the unit sales price. d Increase unit variable cost 9 19. Brand': Bakery's reported sales of $5000 Coributin Margin of $175,000,and Operating Income of $$0,000. What is Brandi's degree of operating leverage? b. 0.2 c. 5.0 d 3.5