Multiple choice and true & False Questions (100 Points). 1. As production decreases, one would expect the variable cost per a. Decrease. b Increase emain unchanged d. Decrease and then increase e. Do none of the above. 2. The difference between fixed costs and variable costs is that a. Variable costs per unit vary within the relevant range, while fixed costs per unit re main constant within the relevant range b. Variable costs per unit are constant (remain unchanged) within the relevant range while fixed costs per unit vary within the relevant range. able costs per unit change in direct proportion to changes in activity, while total fixed costs change in direct proportion to changes in activity d. Variable costs per unit and fixed costs per unit remain constant within the relevant range. None of the above. e. A good example of a mixed cost is: a. Direct materials cost b. 3. C. d. e. Indirect materials cost utilities cost. depreciation. None of the above. 4. In the month of lowest production volume, 500 units were produced and total utilities costs were $2,800. In the month of highest production volume, 850 units were produced at a total cost of $4,200. Using high and low method, what is the fixed cost? a. $400. b. $800 c. $2,675 d. $3987.50 e. None of the above. In the month of highest telephone activity, 3,400 calls were placed, and total telephone cost of $1,050. In the month of lowest activity, 2000 calls were placed, at a total cost of $700. Using the high and low method, what is the Variable cost per call? a. $4.50 b. $2.00 . 0.50 d. 0.25 5. e. No ne of the above 6. Ifa product has a selling price of $35 per unit, and variable costs per unit is $15, and total fioxed cost is $240,000 per year. How many units must be sold to make a profit of $80,000