v) Perez Company's break-even point is 25,000 units. Its product sells for $35 and has a $17 variable cost per unit. What is the company's total fixed cost amount?

a) Fixed costs cannot be computed with the information provided.

b) $450,000

c) $425,000

d) $875,000

vi) If a company experiences an increase in rent expense, the total cost line on the cost-volume-profit graph will:

a) shift upward, and the break-even point will shift downward.

b) shift upward, and the break-even point will also shift upward.

c) shift upward and have a steeper slope, and the break-even point will also shift upward.

d) shift upward and have a flatter slope, and the break-even point will be unchanged.

vii) The pricing strategy that begins with the determination of a price at which a product will sell and then focuses on the development of that product with a cost structure that will satisfy market demand is known as

a) cost-plus pricing.

b) prestige pricing.

c) developmental pricing.

d) target costing.