Explanation not necessary Which of the following represents the components of the income statement for a service business? A Service Revenue - Operating Expenses = operating income B. Sales Revenue - Cost of Goods Manufactured = gross profit C. Sales Revenue - Cost of Goods Sold = gross profit D. Service Revenue - Cost of Goods Purchased = gross profit Fixed costs are expenses that A vary in response to changes in activity level B. remain constant as activity changes C. remain constant on a per-unit basis D. increase on a per-unit basis as activity increases Variable costs are expenses that A remain constant on a per-unit basis and remain constant in total regardless of activity level B. decrease on a per-unit basis as activity level increases C remain constant on a per-unit basis but change in total based on activity level D. remain constant in total regardless of activity level within a relevant range Conversion costs include all of the following except: A. depreciation on factory equipment B. factory utilities C. wages of production workers D. direct materials purchased In the cost equation Y = a + bx, Y represents which of the following? A. units of production B. variable costs C. total costs D. fixed costs