QUESTION 5

1. An increase in the level of activity will have the following effects on unit costs for variable and fixed costs:

   	a.	Unit Variable Cost Unit Fixed Cost Decreases Remains constant
   	b.	Unit Variable Cost Unit Fixed Cost Remains constant Decreases
   	c.	Unit Variable Cost Unit Fixed Cost Increases Decreases
   	d.	Unit Variable Cost Unit Fixed Cost Remains constant Remains constant

1 points

QUESTION 6

1. Mariot Inc. is planning to sell 900,000 units for $2.0 per unit. The contribution margin ratio is 30%. If Mariot will break even at this level of sales, what are the fixed costs?

   	a.	$720,000.
   	b.	$270,000.
   	c.	$540,000.
   	d.	$380,000