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Part $1$

Match the following terms with the correct$$ definitions:

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Part $1$

Part $2$

$1.$

Costs that do not change in total over wide ranges of volume.

g$.$ Fixed costs

$2.$

Technique that estimates profit or loss results when conditions change.

i$.$ Sensitivity analysis

$3.$

The sales level at which operating income is zero.

a$.$ Breakeven

$4.$

Drop in sales a company can absorb without incurring an operating loss.

d$.$ Margin of safety

$5.$

Combination of products that make up total sales.

f$.$ Sales mix

$6.$

Net sales revenue minus variable costs.

$7.$

Describes how a cost changes as volume changes.

$8.$

Costs that change in total in direct proportion to changes in volume.

$9.$

The band of volume where total fixed costs and variable cost per unit remain constant.