James Company has the following information related to its manufacturing and selling of staplers.

Current selling price, per unit$6.00Direct materials, per unit$2.00Direct labor, per unit$1.00Variable manufacturing overhead, per unit$1.00Variable operating expense$1.00Fixed manufacturing overhead$20,000Fixed operating expenses$5,000

Which of the following are true regarding the assumptions of James Company's cost-volume-profit analysis? (Check all that apply.)

If variable costs change, direct labor costs will be half of direct materials costs.

Fixed manufacturing overhead of $20,000 is sufficient to achieve the break-even volume.

Fixed operating expenses of $5,000 are sufficient to achieve the break-even volume.

Demand will be sufficient to warrant an average price of $6 per unit.