Which of the following conditions would cause the break-even point to decrease?

a.Total fixed costs decrease

b.Total fixed costs increase

c.Unit variable cost increases

d.Unit selling price decreases

Operating leverage can be used to measure

a.contribution margin.

b.the impact of changes in sales on operating income.

c.fixed costs.

d.sales.

All of the following are assumptions of cost-volume-profit analysis except

a.the sales mix is constant.

b.there is no change in inventory quantities during the period.

c.costs can be divided into fixed and variable components.

d.within the relevant range of operating activity, the efficiency of operations can change.

Which of the following is not one of the ways that cost-volume-profit analysis can be useful for managerial decision making?

a.For setting selling prices

b.For determining where to purchase raw materials

c.For choosing among market strategies

d.For selecting the mix of products to sell