REVIEW QUESTIONS 1. Which of the following is NOT an assumption of cost-volume-profit analysis? A. Inventory levels will change as production levels vary. B. Managers can classify each cost as either variable or fixed, and mixed costs can be broken down into their variable or fixed component. C. Revenues are linear throughout the relevant range of volume. D. The sales mix remains constant 2. If the sales price is $20 per unit, the variable cost is $12 per unit, total fixed costs is $12.000, and 15.000 units are produced, the contribution margin per unit is A $20. B. $12 C59. D. $8 3. 1 the sales price is 560 per unit, the variable cost in 510 per unit, total fixed costs is 560,000, and 12.000 units are produced, the breakeven in units is A B C. D 1.200 1000 240 200 4. If the sales price is $150 per unit, the variable cost is $90 per unit, and total fixed costs is $24.000, the contribution margin ratio is A. DE B. 60% C. 40% D 2016 5. If the sales price is $150 per unit, the variable cost is 590 per unit, and total fixed costs is $24.000, the breakeven in sales dollars is: ASISOO. B. $24.000 C. $36.000 D. $60.000 6. If the sales price is to per unit, the variable cost is $36 per unit, total fixed costs is $50.000, how many units need to be sold if the desired profit is $100.0007 A 1000 units B 2.500 units C. 4.100 units D. 6.250 units 7. Leverage Corporation wells two products Regular and Supreme Leverage wells three Regular for every two Supremes. The Resells for $20 each with variable costs of 511 cach, whereas the Supreme sells for $25 each with variable costs of 515 each. If fixed costs are $21.00, what is the bakeven point in uni? A 1,167 units of each B. 1.050 units of each C. 1.30 units of Regular and 8 units of Supreme D. units of Regular and 1.30 units of Supreme DUE