Which of the following statements is (are) true? (1). The term full cost refers to the cost of manufacturing and selling a unit of product and includes both formed and variable costs (2). The fixed cost per unit is considered constant despite changes in volume of activity within the relevant range O Only (I is true O Only (2) is true O Both (1) and (2) are true O Neither (1) nor (2) are true Beginning Inventory in units Units produced Units sold Sales Material costunt level of variable) Variable conversion cost used Committed) Facility level or feed manufacturing cost Indirect operating costs 4.000 $ 400,000 $ 6.000 000 $ 72,000 $ 0.000 The absorption ending Inventory is O $8,000 $40,000 $24,000 O $36,000 The margin of safety percentage is computed as: (Total sales - Break even sales) - Total sales. O Break even sales + Total sales Total sales - Break even sales Cost-volume-profit (CVP) analysis is a simple but powerful tool to assist management in making operating decisions. Which of the following does not represent a potential use of CVP analysis? O Aids in determining optimal pricing policies O Alds in evaluating tax planning alteratives O Ability to compute the break-even point Ability to determine optimal sales volumes