QUESTION 1 Responsibility accounting is a system in which a manager is held responsible for those items of revenues and costs-and only those items-that the manager can control to a significant extent. O True O False QUESTION 2 The sales volume in units that are needed to achieve a specific Target Profit can be calculated by Dividing the dollars of fixed costs by the unit contribution margin Dividing the dollars of fixed costs and target profit by the unit contribution margin Dividing the dollars of target profit by the unit contrbuion margin Dividing the dollars of target profit by the sales price QUESTION 3 Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November 319,200 188 100 131,100 106 500 $ 24.600 Sales (5,700 units). Variable expenses. Net operating income. If the company sells 5,300 units instead of S,700, its net operating income would then amount to: 1.$24,600 O 2.$2,200 3.$22,874 4.$15,400 QUESTION 4 A company with sales of $60,000 and variable expenses of $30,000 should spend $40,000 on increased advertising if the increased advertising will increase sales by $60,000. True O False QUESTION 5 Drake Company's income statement for the most recent year appears below: Sales (26,000 units).. Less: Variable e Contribution margin. Less: Fixed expenses Net operating I $650,000 442,000 208,000 234.000 $(26,000) Drake's unit contribution margin is: 0 1.$17 QUESTION 6 Once the break-even point has been reached, net operating income will increase by the unit contribution margin for each additional unit sold. O True O False