Part l: True / false (10 Marks) 1- All other Reynold Enterprises sels a single product for $25. The $15 and the fixed expense per unit is $5 at the current. operating income will increase by $10 if one more unit is sola level of sales. The company's net 2- Indirect costs incurred to support a number of cost objects any individual cost object. These costs cannot be traced to 3- All other things the same, a reduction in the variable expense per unit will decrease the bre even point. ak- Ti 4- Direct materials are considered to be a product cost under vari costing. 5- At the break-even point, the total contribution margin and net operating income are equal. 6-One way to compute the total contribution margin is to deduct total fixed expenses from total sales Under variable costing, fixed manufacturing overhead cost is not treated as a product cost