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Total fixed costs: Have already been incurred and cannot be avoided so they are irrelevant for decision making. Do not change due to changes in
Total fixed costs: Have already been incurred and cannot be avoided so they are irrelevant for decision making. Do not change due to changes in the volume of activity within the relevant range. Are directly traceable to individual units of product. Change due to changes in the volume of activity within the relevant range Which of the following is true regarding relevant costs? All available costs are relevant in every decision. Costs that differ between choices are relevant. Sunk costs are always relevant. Only costs that remain constant between decisions are relevant. Management should always eliminate a segment or product line if it initially appears to be losing money. True False A company has fixed costs of $75,000. It's contribution margin ratio is 20% and the product sells for $80 per unit. What is the company's break-even point in dollar sales? $4,688 $93,750 $375,000 $300,000
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