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# 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