please answer 6-20

6. On a unit cost basis, as unit sales decrease within a normal operating range a. Variable costs per unit will increase b. Variable costs per unit will decrease c. Variable costs per unit will stay the same 7. As total unit sales decrease within a normal operating range a. Total variable costs will increase b. Total variable costs will decrease c. Total variable costs will stay the same 8. As total sales dollars increase within a normal operating range a. The contribution margin will increase b. The contribution margin will decrease c. The contribution margin will stay the same 9. In most cases a shift from relatively high fixed costs to relatively low fixed costs a. Will raise the breakeven point and lower the contribution margin ratio b. Will raise the breakeven point and raise the contribution margin ratio c. Will lower the breakeven point and lower the contribution margin ratio 10. On the traditional/ normal breakeven graph, the line with the steepest slope is the a. Fixed cost line b. Total cost line c. Revenue line 11. In most cases, for a profitable firm, assuming that unit sales remain the same, if the variable costs per unit and total fixed costs decrease by 10% and the firm reduces the selling prices to customers by 10% a. net income will be increased b. net income will be decreased c. net income will remain the same 12. MSM Inc. sells garden statues. Each statue sells for $95. MSM Inc. buys each statue for $40 and pays a 20% commission to salespeople for all sales made by the company. All other costs ($3,000 each month) are fixed. If MSM Inc. reduces monthly fixed cost by $800 but increases the commission rate by 8% a. the monthly breakeven point in unit sales will increase b. the monthly breakeven point in unit sales will decrease c. the monthly breakeven point in unit sales will not change d. need more information to be able to calculate the change 13. For a firm with revenue growing each month and a collection pattern that averages 55 days, the amount of cash collections during any one month will never exceed monthly sales for the same month. a. True b. False 14. The formula to calculate the monthly amount of needed production in units is equal to a. monthly sales in units - beginning inventory - desired ending inventory b. monthly sales in units - ending inventory + beginning inventory c. monthly sales in units + ending inventory + beginning inventory d. monthly sales in units - beginning inventory + ending inventory 15. A formula that can used to calculate the value of a firm's contribution margin is a. sales minus total costs b. total costs minus variable costs c. sales minus fixed costs d. net operating income plus fixed costs 16. A contribution type income statement categorizes cost by a, behavior b. function c. dollar size d. department 17. Assume that a profitable firm has been notified that all costs for the coming year will decrease by 2%. The firm will respond by decreasing all selling prices by 2%. The impact of these changes will be to. a. lower the breakeven point in sales dollars b. increase the breakeven point in sales dollars c. have no impact on the breakeven point in sales dollars 18. ABC Company currently has monthly fixed costs of $20,000, variable cost per unit of $10 and a selling price of $15 per unit. The firm is considering decreasing monthly fixed cost by $3,000 and increasing variable cost per unit by $3. The impact of these changes will be to a. increase the unit breakeven point b. decrease the unit breakeven point c. have no impact on the unit breakeven point 19. The first step in the cost estimation process is normally to a. identify cost drivers b. collect data c. identify cost objects d. Compile at least five years of historical data 20. The use of more computer driven machine operations over the past 20 years in the United States has likely increased the cost portion of the total cost formula. a. fixed b. variable