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Which of the following statements is true? Total fixed cost is affected by the number of units produced. A per unit cost that is constant

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Which of the following statements is true? Total fixed cost is affected by the number of units produced. A per unit cost that is constant at all production levels in a fixed cost. A per unit cost that is constant at all levels in a variable cost. Absorption costing income is not attracted by production level changes Total variable costs remain constant over all levels of production. Which of the following is NOT true? Total fixed costs remain the same regardless of the volume. Total variable costs change with volume. Total variable costs decreases as the volume increases. Fixed costs per unit increase as the volume decreases. None of the above. TRAXX Co. is operating at 75% capacity: 100% capacity is 30,000 units. Cost information PER UNIT relating to this production is The sales department has requested a special $15 per unit sales prize for a new customer for 5,000 units. The company should accept the offer A. because incremental costs are less than incremental revenue. B. because incremental revenues are less than incremental costs. The company should reject the offer C. because incremental costs are less than incremental revenue. D. because incremental revenues are less than incremental costs. E. because there is not enough excess capacity. The Margin of Safety is the excess of A. Break even sales over expected sales. B. Expected sales over breakeven sales. C. Expected sales over variable costs. D. Expected sales over fixed costs. E. None of the above. A term describing a firm's normal range of activities is A. High-low level of operations. B. Breakeven level of operations. C. Margin of safety of operations. D. Relevant range of operations. E. None of the above

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