Multiple choice: 1, DeGiaimo Co. has an operating leverage of 5.next year's sales are expected to increase by 10%, then the company's operating income will increase by 50%. a. True b. False 2. the unit selling price is $40, the volume of sales is $3,000,000, sales at the break- even point amount to $2.500,000, and the maximum possible sales are $3,300,000, the margin of safety will be 12,500 units. a. True b. False 3. Iit the unit seling price is $50, the volume of sales is $450,000, sales at the break even point amount to $375,000, and the maximum possible sales are $$50,000, the margin of safety will be 2.000 units a. True b. False 4. If the volume of sales is $4,000,000 and sales at the break-even point amount to $3200,000, the margin of safety will be 20%. a. True b. False . Iif the volume of sales is $6,000,000 and sales at the break-even point amount to $4,800,000, the margin of safety will be 25%. a. True b. False 8 Iif the volume of sales is $6,000,000 and sales at the break-even point amount to $5,000,000, the margin of safety wil b@ 20%. a. True b. False 6. Cost behavior refers to the manner in which: a. a cost changes as the related activity changes b. a cost is allocated to products .acost is used in setting seling pnces. d. a cost is estimated 7. Costs that remain constant on a per-unit level as the level of activity changes are caled: a. fixed costs. b. mixed costs c. opportunity costs. d. variable costs. 8. Which of the following graphs ilustrates the behavior of a total foxed cost within the specified relevant range