| d. increase or decrease, depending upon the percentage increase in wage rates. Zeke Company sells 25,000 units at $21 per unit. Variable costs are $10 per unit, and fixed costs are $75,000. The contribution margin ratio and the unit contribution margin are: | | | | d. 47% and $8 per unit. If sales are $500,000, variable costs are 75% of sales, and operating income is $40,000, what is the operating leverage? | | | | d. 1.25 Which of the following describes the behavior of the fixed cost per unit? | a. Increases with increasing production | | | | b. Remains constant with changes in production | | | | c. Decreases with increasing production | | | | d. Decreases with decreasing production If variable costs per unit decreased because of a decrease in utility rates, the break-even point would: | | b. increase or decrease, depending upon the percentage increase in utility rates. | | | | | d. remain the same. Costs that vary in total in direct proportion to changes in an activity level are called: | | | | d. sunk costs Which of the following conditions would cause the break-even point to increase? | a. Total fixed costs decrease | | | | b. Unit variable cost decreases | | | | c. Unit variable cost increases | | | | d. Unit selling price increases In cost-volume-profit analysis, all costs are classified into the following two categories: | a. discretionary costs and sunk costs | | | | b. variable costs and fixed costs | | | | c. mixed costs and variable costs | | | | d. sunk costs and fixed costs | | | | | | | | | | | | | | |