ich of the following describes the behavior of the variable cost per unit? Varies in increasing proportion with changes in the activity level a. b. Varies in decreasing proportion with changes in the activity level c. Remains constant with changes in the activity level d. Varies in direct proportion with the activity level 13. Contribution margin is: a. the excess of sales revenue over variable cost b. another term for volume in the "cost-volume-profit" analysis c. profit d. the same as sales revenue If fixed costs are $850,000 and variable costs are 75% of sales, what is the break-even point (dollars)? a. $1,133,333 b. $1,983,333 c. $3,400,000 d. $2,550,000 14, 15. What term is commonly used to describe the concept whereby the cost of manufactured products is composed of direct materials cost, direct labor cost, and factory overhead cost? a. Standard costing b. Variable costing c. Absorption costing d. Direct costing 16. What term is commonly used to describe the concept whereby the cost of manufactured products is composed of direct materials cost, direct labor cost, and variable factory overhead cost? a. Absorption costing b. Differential costing