QUESTION 1 The owner of the Caf is renegotiating the operation's lease and has the option of either an annual fixed lease of $72,000 or a variable lease set at 4.0% of annual revenue. What is the indifference point? $1,500,000 $1,800,000 $2,000,000 Cannot be determined from the information given. QUESTION 2 Which of the following types of costs is generally allocated among profit centers? Standard costs. Lost costs. Incremental costs. Sunk costs. Overhead costs. QUESTION 3 The total variable costs increase as total sales increase. What happens to the variable costs per unit? Increase Decrease. Remains the same. This is not the