If each furnace required a hose that costs $20 and $2.000 furnaces are produced for the month, the total cost for hoses is a. considered to be a direct fixed cost. b. considered to be a direct variable coal. c. considered to be an indirect fixed cost. d. considered to be on indirect variable cost. 2. If break even point is 100 units, each unit sells for $30. and fixed costs are $1.000. then on a graph a. the total revenue line and the total cost line will intersect at $3,000 of revenue. b. the total cost line will be zero at zero units sold. c. the revenue line will start at $1.000. d. all of the above are true. 3.Palmer Inc. currently produces 110.000 units at a cost of $440,000. Next year Palmer Inc. expects to produce 115,000 units. Palmer's relevant range is 100,000 to 120,000 units. If the cost is variable and M 5,000 units are produced, the cost a. will stay the same b. will increase to $460,000 c. will decrease d. will be indeterminate 4.How many units would have to be sold to yield a target operating income of $22,000, assuming variable costs are $ 15 per unit, total fixed costs arc $2,000, and the unit setting price is $20? a. 4, 800 units b. 4, 400 units c. 4,000 units d. 3, 600 units 5. Which of the following statements about determining the break even point is FALSE? a. Operating income is equal to zero. b. Contribution margin - fixed costs is equal to zero. c. Revenues equal fixed costs plus variable costs. d. Break even revenues equal fixed costs divided by the variable cost per unit