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QUESTION

# Total variable costs change proportionately with changes in output activity True/False 2.

1.Total variable costs change proportionately with changes in output activityTrue/False2.Cost-volume-profit analysis is frequently based on the assumption that the production level is the same as the sales level.true/false3.A product sells for \$30 per unit and has variable costs of \$18 per unit. The fixed costs are \$720,000. If the variable costs per unit were to decrease to \$15 per unit and fixed costs increase to \$900,000, and the selling price does not change, break-even point in units woulda. increase by 20,000b. 6,000c. increase by 6,000d. decrease by 20,000e. not change4.A firm expects to sell 25,000 units of its product at \$11 per unit. Pretax income is predicted to be \$60,000. If the variable costs per unit are \$5, total fixed costs must bea. \$65,000b. \$90,000c. \$125,000d. \$215,000e. \$275,000