1. Contribution margin is the excess of sales over variable costs, and this is the amount available for the recovery of fixed assets and generation of profit. Select one: True False
2. Break-even analysis is a technique employed in determining the sales level where revenue equals expenses or the point when the company earns zero profit. Select one: True False
3. Variable costs are variable per unit and fixed costs are fixed per unit. Select one: True False
4. Relevant range refers to a band of activity within which sales and expense relationships may be valid. Select one: True False
5. At break-even, contribution margin equals fixed cost. Select one: True False
6. Using the high-low method, the rate of variability is determined by dividing the difference between the highest and lowest activity levels by the difference between the highest and lowest costs. Select one: True False
7. Margin of safety ratio plus contribution margin ratio equals profit ratio. Select one: True False
8. An increase in fixed cost causes an increase in break-even point and a decrease in total profit. Select one: True False
9. A 10% change in volume causes a 10% change in total sales, total variable cost, and total contribution margin. Select one: True False
10. A 20% change in unit variable cost will cause a 20% change in total variable costs and total sales. Select one: True False