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Multiple Choice Question 106 Assume total sales of $600,000, total variable costs of $400,000, total fixed costs of $100,000, product costs of $200,000, and period costs of $300,000. What is the degree of operating leverage? O2 1.5 0.5 O .67 Multiple Choice Question 96 Which of the following is not an assumption about the data when using CVP analysis? A linear relationship exists between variable costs and sales activity over the relevant range of interest. All costs can be easily and accurately separated into fixed and variable components. Total fixed costs remain at a constant level and variable costs per unit remain unchanged at all sales levels. More inventory is purchased than sold. Multiple Choice Question 89 Cost-volume-profit analysis helps managers assess the O impact of a change in fixed costs on profit. O impact of a change in sales price on profit. O impact of changes in sales price, variable costs and fixed costs on profit. O impact of a change in variable costs on profit. Multiple Choice Question 10 Assume total fed costs of $150,000, variable costs per unit of 6, and contribution margin per unit of 4. How many units must be sold to meet a target net income of $50.000, assuming a tax rate of 2007 O 52,500 50,000 55,625 O 35,000 Multiple Choice Question 60 Which of the following is a characteristic of a fixed cost? The total cost remains constant, regardless of changes in the level of activity. The cost per unit varies inversely with changes in the level of activity O Both that the total cost remains constant, regardless of changes in the level of activity and that the cost per unit varies inversely with changes in the level of activity. O Neither that the total cost remains constant, regardless of changes in the level of activity nor that the cost per unit varies Inversely with changes in the level of activity