Check the correction statements below. A firm cleans chemical tank cars in the Bay St. Louis area. With standard equipment, the firm typically cleaned 60 chemical tank cars per period. They utilized 10 gallons of solvent, and two employees worked 240 hours. The company decided to switch to a larger cleaning machine.

output, cars cleaned annually 60, 60

solvent, materials used 10, 12

solvent/per unit cost $25.00, $25.00

labor hours work during the period 240, 180

cost/per labor hour $17.50, $17.50

capital $20,000, $20,000

capital equipment fully depreciated, in periods 2, 2

gas/gal, energy 30, 20

cost/per gallon $1.89, $1.91

other overhead (is part of fixed costs) $3,000, $4,000

assume that the price that market can accept for both periods. $450.00, $450.00

Complete your work sheet before answering the questions.

total cost of materials

unit cost of materials

total cost of labor

unit cost of labor

total cost of capital

unit cost of capital

total cost of energy

unit cost of energy

total cost of oh

unit cost of oh

total cost

unit cost

total variable cost

unit variable cost

contribution

Group of answer choices (true or false)

% change in unit material costs between the two periods is -0.20. (T/F)

% change in unit labor costs between the two periods is more than -0.23. (T/F

% change in annual total capital costs between the two periods is 0.00. (T/F)

% change in unit energy costs between the two periods is more than is -$0.33 (T/F)

% change in annual total overhead cost between the two periods is more than 0.30 (T/F)

% change in total outputs between the two periods is 0.00. (T/F)

breakeven point for last period is less than the breakeven point for this period. (T/F)

% change in contribution, this period compared with last period is 0.06 (T/F)