True-False: The following statements are either true or false. Place a (T) in the parentheses before each true statement and an (F) before each false statement. 1. () An example of a step-wise cost is a sales representative's compensation that consists of a constant salary amount and a commission based on the amount sold. 2. () In cost-volume-profit analysis, the level of activity is described in terms of sales volume (either in units or dollars). 3. () In breakeven analysis, an decrease in fixed costs increases breakeven. (hint: p. 713) 4. () A scatter diagram plots past cost and unit volume points on a graph. 5. () The high-low method of finding the estimated line of cost behavior is preferable because it takes into consideration every point on the scatter diagram. 6. () The break-even point in units can be calculated by dividing expected fixed costs by the expected contribution margin ratio. 7. () A loss is represented on a CVP chart by the vertical distance between the sales line and total cost line to the right of the break-even point. 8. () The margin of safety in dollars is the excess of break-even sales minus expected sales. 9. () A multiproduct break-even analysis treats a MIX OF PRODUCTS (composite unit) as a unit of a single product.