Question 1:

Sometimes, if a market is projected to be very stable for a very long time, it could be more profitable to have higher fixed costs and lower variable costs.

True

False

Question 2:

Which of the following would be true:

A. If you have primarily fixed costs as you increase sales your cost per unit will decrease

B. If you have primarily variable costs as you increase sales your cost per unit will decrease

C. If you have primarily variable costs as you increase sales your cost per unit will remain about the same (excluding volume discounts)

D. Your unit cost is not likely to change moving costs from fixed and variable costs

Question 3:

Revenue and profit are the same things.

True

False